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Time of India
15-07-2025
- Business
- Time of India
HDFC Bank board sets up oversight panel to monitor governance framework in subsidiaries
Mumbai: HDFC Bank chairman Atanu Chakraborty said the bank has strengthened governance frameworks across its key subsidiaries as it adapts to its expanded role as a financial conglomerate following the merger with HDFC Ltd. Tired of too many ads? go ad free now 'In order to address our enhanced stature as a financial conglomerate, we have strengthened our oversight on the group companies,' Chakraborty said in the bank's FY25 annual report. These include HDB Financial Services, HDFC Life Insurance, HDFC Asset Management, HDFC ERGO General Insurance, and HDFC Securities. A dedicated Group Oversight Department now monitors the implementation of the governance framework and reports to one of the executive directors. 'This function also briefs the Board of Directors on critical updates, if any, regarding the group companies,' he added. Four of these five subsidiaries—HDFC Life, HDFC AMC, HDFC ERGO, and HDB Financial Services—are now publicly listed. 'The IPO [of HDB Financial Services] was successfully concluded in the first quarter of the current financial year,' the chairman said, calling it 'another milestone for the group.' HDFC Bank was designated a Domestic Systemically Important Bank (D-SIB) and recalibrated its internal systems accordingly. 'We undertook a significant transformation of our compliance function, reinforcing our commitment to governance, transparency and regulatory excellence,' Chakraborty said. FY25 marked the first full year of operations for the combined HDFC Bank-HDFC Ltd entity. 'It now stands strengthened, much bigger in scale, broadened in capability and more unified in purpose,' he said. Tired of too many ads? go ad free now The merger brought together diverse businesses spanning life and general insurance, mutual funds, securities, and retail finance under one group. On future prospects, the chairman said, 'We are well positioned to take advantage of the realignments in international trade flows and supply chains that are now unfolding.' He added that India's economy is likely to grow 6.5% or more, supported by stable macroeconomic policies, rural demand, and potential rate cuts. The bank continues to invest in technology. 'GenAI presents a generational transformation opportunity and responsibility,' Chakraborty said, while stressing the need for 'appreciation of risk, reliability and information security.' Net profit for FY25 rose 10.7% to Rs 67,347.4 crore, while gross NPAs were contained at 1.33%. A dividend of Rs 22 per share has been proposed. 'The bank has a clear roadmap for growth anchored on values that have served the group well for over four decades,' he said.
Time of India
08-07-2025
- Business
- Time of India
Credit growth takes a beating in first quarter
Mumbai: Credit growth was muted for Indian banks in the June quarter, with private lenders reporting less than half the pace from the same period last year, according to proforma figures. HDFC Bank 's loan book expanded by just 6.7% in Q1FY26 reaching ₹26.53 lakh crore compared to 14.9% a year earlier (excluding merger impact with HDFC Ltd). Yes Bank posted loan growth of 5.1% in the June quarter taking its loan book to ₹2.41 lakh crore, down from 14.8%, while IDBI Bank recorded 9.2% growth to ₹2.11 lakh crore versus 17.3% in the same quarter last year. As per provisional numbers released by lenders, Bandhan Bank grew its loan book by 6.4% to ₹1.33 lakh crore, down from a growth of 21.8% recorded in the June quarter of last year. RBL Bank also grew its book by 9.3% to ₹96,704 crore versus last year's quarter. "1QFY26E is going to be a tough quarter for banks; the market largely expects results to be weak across the space," said Suresh Ganapathy, head of financial services research at Macquarie Capital. "Going by the system loans and deposits data, QoQ numbers so far have been flat. On a YoY basis, system loan growth has been sub 10% and deposit growth, a tad above 10%. On a YoY basis, we expect loan growth to be weak." Though PSU banks performed a tad better than private banks as they were more aggressive in pricing loans. Bank of Baroda posted a growth of 12.6% in its advances to ₹12.07 lakh crore in the June 2025 quarter versus a growth of 8.1% in the same period last year. Punjab National Bank said it grew loans at 9.9% to ₹11.30 lakh crore versus a rise of 12.7% in the same period last year. While Bank of India grew loans at 11.9% to ₹6.71 lakh crore versus 15.8% growth registered in the same period last year. " Public sector banks are outpacing private sector banks by more than 4% across multiple segments like mortgages, corporate loans as well as several non-mortgage retail segments such as auto loans," said Pranav Gundlapalle, head of India financials at Bernstein. A slowdown in bank credit growth is also due to corporates increasingly tapping capital markets for cheaper and faster access to funds, which led to a 32.9% surge in resource mobilisation. RBI data shows corporate bond net outstanding increased to ₹53.6 lakh crore at the end of March 2025, supported by the highest-ever fresh issuance of ₹9.9 lakh crore during 2024-25. Funds raised through capital markets rose to ₹15.7 lakh crore at the end of March 2025, from ₹11.8 lakh crore a year earlier. Meanwhile, bank lending to industry slowed to just 6.9% in FY25, indicating how Indian corporates are steadily diversifying their funding sources. "A sustained soft demand for wholesale credit and the growing role of alternative funding sources such as bonds and external commercial borrowings have intensified competition (on rates)," said Soumyajit Niyogi, Director - Core Analytical Group, India Ratings. "The robust corporate cash flows have also reduced the need for working capital financing."
News18
22-06-2025
- Business
- News18
Did ICICI Bank Try To Acquire HDFC? What Deepak Parekh Reveals
Last Updated: 'I remember you talking to me said ICICI started HDFC. 'Why don't you come back home?' That was your offer,' Parekh said in interaction with Ex-ICICI CEO Chanda Kochhar. ICICI Bank once tried to merge housing finance firm HDFC with itself before its reverse merger with its own banking arm, HDFC Bank former chairman Deepak Parekh has revealed. In a YouTube video, Parekh, in an interaction with ICICI Bank former MD & CEO Chanda Kochhar, said, 'I remember you talking to me once…you said that ICICI started HDFC. 'Why don't you come back home?' That was your offer." However, Parekh said he declined the offer, saying 'it won't be fair or proper with our name and the bank and all". He also said the HDFC Bank-HDFC reverse merger, which was completed in July 2023, was primarily driven by regulatory pressure. 'The RBI supported us and they pushed us into it to some extent and they helped us…there were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval," Parekh said. On the reverse merger, Parekh called it 'a sad day and a happy day". He added, 'It's good for the institution. It's good for the country to have large banks. Look at how large Chinese banks are. We have to be bigger, larger in India." Describing the merger as good for the institution, he said, it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added. HDFC Ltd, the parent entity of HDFC Bank, merged with its banking subsidiary to create the country's biggest private sector lender. The merger became effective from July 1, 2023. With the reverse merger, the 44-year-old institution HDFC Ltd faded into memory lane. Interestingly, the creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding Rs 5 lakh crore, as systemically important — well above the Rs 50,000-crore threshold. (With Inputs from PTI) First Published:
NDTV
21-06-2025
- Business
- NDTV
ICICI Bank Made Offer To Acquire HDFC Ltd Before Reverse Merger: Ex-Chairman Deepak Parekh
New Delhi: Veteran banker and former chairman of HDFC Ltd, Deepak Parekh, has said that ICICI Bank had made an offer to take over mortgage lender HDFC Ltd but it was declined. HDFC Ltd, the parent entity of HDFC Bank, later merged with its banking subsidiary to create the country's biggest private sector lender. The merger became effective from July 1, 2023. With the reverse merger, the 44-year-old institution HDFC Ltd faded into memory lane. Interestingly, creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. During an interaction with ex-ICICI Bank MD and CEO Chanda Kochhar, released on YouTube, Parekh said, "I remember you talking to me said that ICICI started HDFC. 'Why don't you come back home?' That was your offer." However, Parekh said he declined the offer, saying "it won't be fair or proper with our name and the bank and all." Later eventual reverse merger with HDFC Bank, completed in July 2023, was driven mainly by regulatory pressure, he said, adding, "RBI supported us and they pushed us into it to some extent and they helped were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval." Describing the merger as good for the institution, he said, it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Mint
21-06-2025
- Business
- Mint
Deepak Parekh's BIG revelation: Chanda Kochhar had proposed ICICI Bank-HDFC merger. Here's what he replied
Veteran banker and former chairman of HDFC Ltd Deepak Parekh recently revealed that ex-ICICI Bank CEO Chanda Kochhar had once made a bold pith to him, suggesting to merge the two financial giants. This came years before HDFC was eventually merged with its banking arm. During a candid conversation on her YouTube channel, Parekh told Chanda Kochhar that the proposed deal was never talked about in public. 'I remember you talking to me once. I remember it very clearly. It's never been talked about in public, but I'm willing to share it now,' the veteran banker said. 'You said that ICICI started HDFC. 'Why don't you come back home?' That was your offer,' he said. Interestingly, creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. However, Parekh revealed that he had declined the offer, reasoning 'it won't be fair or proper with our name and the bank and all.' Deepak Parekh further talked about the HDFC-HDFC Bank merger that was completed in July 2023. Talking to Chanda Kochhar, he said that the union was mainly driven by regulatory pressure. 'RBI supported us and they pushed us into it to some extent and they helped us,' he said. However, he revealed that 'there were no concessions, no relief, no time, nothing,' while acknowledging the RBI 'helped us to go through the process and get the approval.' Parekh said that the merger deal was kept as a secret. 'It was kept a secret. No one knew about it—when it hit the press in the morning, that's when everyone found out. The government was aware because RBI was in touch with them, and we kept it so close—just lawyers, due diligence, accountants,' he said. Looking back at the day when the merger was closed, Parekh described it as a 'sad day and a happy day'. The veteran banker described the merger as good for the institution, adding that it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added.
