Chanda Kochhar, MD and CEO of ICICI Bank, has been in the centre of a storm for the past few weeks. And just when you thought it couldn’t get more difficult for her to stay put, another CEO dropped an absolute bomb of a letter dedicated to her and we couldn’t agree more.
In her brutally honest letter published in the Economics Times, Anjana Menon, CEO of Content Pixies, reminds Chanda Kochhar of why she should put her institution’s reputation before hers and step down from the top post, at least while the investigations are on.
What Is The Controversy About?
It is alleged that as a consortium of lenders, ICICI Bank, which Mrs. Kochhar has been heading for the past nine years, gave a loan of close to Rs. 3250 crores to Videocon group, headed by Venugopal Dhoot.
The Videocon group, in turn, indirectly gave funds to NuPower Renewables (NPRL), which is run by Chanda Kochhar’s husband, Deepak Kochhar. Almost 86 percent (Rs. 2810 crores) of that loan was unpaid and the Videocon account was declared as NPA in 2017.
This led to suspicions regarding whether there was any quid pro quo involved, that is, did the loan benefit her husband and thus amount to a conflict of interest?
These allegations were raised by Indian Investors Protection Council’s trustee Arvind Gupta.
Also Read: Did Chanda Kochhar Act Corrupt In Giving Massive Loan To Videocon To Benefit Husband Deepak Kochhar?
What Does The Letter Say?
Anjana Menon launches a scathing attack on Chanda Kochhar for hiding behind her Board of Directors when she should come out and accept responsibility for the allegations, even if they are unproven, much like Martin Sorrel of WPP did.
When allegations of misconduct were put on Sorrel, he quit WPP, after spending 33 years at the helm of its affairs. He put his institution’s interests before his own, and that is what we expect Mrs. Kochhar to do.
When the news of these allegations first broke out, ICICI Bank Chairman MK Sharma came out in full support of their leading lady. He said the bank had full faith and confidence in her and labelled the reports as ‘malicious and unfounded rumors’.
The bank conducted a ‘secret’ internal investigation two years ago and Mrs. Kochhar came out clean.
But the question is, why did the board not allow an external agency to conduct an investigation or why doesn’t it order a fresh probe into the matter, given that many larger institutions seem to tell a different story?
Why It Is Time For Her To Quit?
In the supposed ‘secret’ internal probe conducted by the bank, Mrs. Kochhar wasn’t guilty of any wrongdoing.
But when the reputation of the bank is at stake and the stakeholders are concerned, shouldn’t the bank give it another look and consider conducting a fresh investigation by an external agency?
Instead, the bank is clinging to technicalities and refusing to concede that their lady might be at fault. Why are they being so protective of her? Wrong intentions or vested interests?
Mrs. Kochhar isn’t helping herself at all either. Is it politically correct for her to head the bank while a criminal investigation is on against her?
This isn’t just about her or the bank. This is also about the investors and shareholders of the bank, whose confidence is shaken ever since the allegations were made public. ICICI Bank’s stocks have fallen rather abruptly and only she herself can save them from falling further.
We are not asking her to permanently resign from her post, mind you. But the least that she can do is to step aside, being fair to the investors and shareholders and allow an external agency to do its job while she remains out of this.
Not to forget, the issue isn’t purely legal anymore. It’s also about ethics.
Mrs. Kochhar, during her time as the CEO of ICICI Bank, has earned a lot of respect and has hardly put a foot wrong. She was amongst the most admired ladies in the country, with her views being highly regarded.
And now that her reputation has come under scanner, it is dignified best for her to step aside rather than invite more speculation and harm her own interests. Perhaps this is another test for her leadership in the past decade.
After all these years of hard work, she could well have earned herself some time off and let the legal procedures decide her fate. By putting herself before her institution, she has committed a mistake, the price of which she might have to pay in the coming future.
Image Credits: Google Images
Sources: The Economics Times, FirstPost, Business Standard + more
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http://edtimes.in/2016/06/more-power-to-the-indian-women-on-forbes-list/
She had a similar snooty attitude while while studying at the Jamnalal Bajaj Institute of Management Studies, Mumbai. I should know since I was her classmate.
Interesting insight, this. It would be very kind of you if you could share this article with your classmates.