Veteran banker and former chairman of HDFC Ltd Deepak Parekh recently disclosed that ex-ICICI Bank CEO Chanda Kochhar had once suggested merging the two financial giants. This proposal was made before HDFC eventually merged with its banking arm.

During a candid conversation on her YouTube channel, Parekh shared that the proposed deal was never discussed publicly. Kochhar had approached him with the idea, saying, 'ICICI started HDFC. Why don't you come back home?' However, Parekh declined the offer, citing concerns about the bank's reputation.

Interestingly, HDFC Ltd was initially financially supported by ICICI Ltd, the parent company of ICICI Bank.

Discussing the HDFC-HDFC Bank merger that concluded in July 2023, Parekh mentioned that regulatory pressure played a significant role in the decision. He revealed that the Reserve Bank of India (RBI) supported and encouraged the merger, although no special concessions were granted.

Parekh emphasized that the merger was kept confidential until it was officially announced. Only a select group of professionals, including lawyers and accountants, were aware of the deal. He described the day of the merger as both sad and happy, highlighting the benefits of having large banks for the country's financial system.