Overview

• Parekh disclosed that Kochhar privately offered to merge ICICI Bank with HDFC, a proposal he rejected as inconsistent with HDFC’s distinct brand identity
• He noted that ICICI Ltd’s financial backing of HDFC underpinned Kochhar’s rationale that the non-bank financier belonged under its corporate parent
• The Reserve Bank of India’s reclassification of HDFC as a systemically important NBFC precipitated its confidential reverse merger with HDFC Bank in July 2023
• The merger was kept under strict confidentiality, with both market participants and government officials learning of the deal only after its public announcement
• Reflecting on the deal, Parekh called the day both “a sad day and a happy day” and argued that larger banks and strategic acquisitions are vital for India’s global competitiveness