ICICI Bank Once Explored Merger with HDFC: Former CEO Chanda Kochhar’s Proposal Revealed

Former HDFC chairman Deepak Parekh disclosed that Chanda Kochhar, then CEO of ICICI Bank, had proposed a merger between ICICI and HDFC in internal discussions. This predates the eventual reverse merger of HDFC into HDFC Bank—carried out under RBI guidance

💡 6 Strategic Insights

1. Early Consolidation Vision
   The proposal highlighted Kochhar’s forward-looking view on merging India’s major lending and housing finance pillars well before 2023 integration .
2. Chanda Kochhar’s M&A Leadership
   As ICICI Bank’s CEO from 2009 to 2018, Kochhar was known for bold strategic moves—including this merger proposition with HDFC .
3. Evolving Amid Regulatory Change
   The initial idea likely built momentum alongside RBI initiatives that later spurred the eventual HDFC–HDFC Bank merger in 2022–23.
4. Competitor Dynamics
   A merger between ICICI and HDFC would have reshaped India’s banking hierarchy—creating a behemoth rivaling SBI and outpacing even HDFC Bank in scale .
5. RBI Regulatory Impact
   Subsequent RBI policies prioritized consolidation, making large-scale bank mergers more viable—from that era’s idea to the completed HDFC reverse merger
6. Insight into Industry Dialogue
   Parekh’s sharing on Chanda Kochhar’s YouTube channel shines light on internal, strategic-level deliberations in India’s top banking institutions economictimes

📅 Timeline Context

• Pre-2018: Chanda Kochhar leads ICICI Bank; early merger discussions emerge.
• 2018: Kochhar exits amid unrelated controversies.
• 2022: RBI encourages consolidation in the banking sector.
• April 2022–July 2023: HDFC finalizes a reverse merger into HDFC Bank.
• June 21, 2025: Deepak Parekh publicly reveals ICICI’s earlier merger proposal during a YouTube discussion

🔭 What’s Next?

• Market Response: Analysts are revisiting past consolidation options, assessing if ICICI–HDFC merger could have reshaped India’s banking landscape.
• ICICI’s Strategy: Observers may look for renewed interest in partnerships or M&A as banks adapt to evolving regulatory frameworks.
• Future Consolidation: RBI may continue to incentivize larger banking structures—this anecdote underscores how industry thinking was already aligned.

✅ Final Takeaway

The revelation that ICICI Bank once considered merging with HDFC, a decade before HDFC’s own integration into its bank subsidiary, zings a spark across India’s banking history. It reveals how top executives like Chanda Kochhar were already eyeing bold consolidation, anticipating the future shape of the country’s financial giants long before policy and execution aligned.