Hdfc Former chairman Deepak Parekh has revealed that former ICICI Bank chief Chanda Kochhar once proposed a merger between ICICI and HDFC, which was long before the reverse merger with his banking branch of HDFC. But it was rejected. HDFC Limited, the original unit of HDFC Bank, later merged with its banking subsidiary company and formed the country’s largest private sector bank. The merger came into effect from July 1, 2023. With the reverse merger, the 44 -year -old organization HDFC Limited was lost in old memories.
ICICI provided financial assistance
Interestingly, financial assistance was given by ICICI Limited, the original unit of ICICI Bank in the construction of HDFC Limited. During a conversation with ICICI Bank’s former Managing Director (MD) and Chief Executive Officer (CEO) Chanda Kochhar, Parekh said, “I remember you spoke to me once. You said that ICICI had started HDFC. Why did you not return home? This conversation was released on YouTube. However, Parekh said that he rejected the proposal saying that “it would not be appropriate for our name and bank and all.” He said that the back merger with HDFC Bank in July 2023 was mainly inspired by regulatory pressure.
RBI also pushed and also helped
Parekh said, “The Reserve Bank of India (RBI) supported us and they pushed us to some extent and they helped us. No concession, no relief, no time, no time, nothing but he helped us go through the process and get approval.” Describing the merger as good for the institute, he said that it is good for the country to have big banks. He said that Indian banks would have to increase through acquisition to become strong in future.
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