Explained: Allegations on ICICI’s CEO Chanda Kochhar (Part 1)
(A conversation between two investor friends,one experienced and the other new to the investment market..sharing the details about the relationship between ICICI banks, Videocon Company and CEO of ICICI bank Chanda Kochhar)
Part 1 –
Jack: Hey Jonnes, how are you..? It’s been so long to see you..! So, how’s the investment and the financial markets in your turn..?
Jonnes: Hello Jack..! All seems well at present. It’s all about how the monetary policies, the company policies and the markets react.
Jack: That’s so true my friend..! By the way, I am thinking to make a quantum of investment in the banking sector, may be private banks after the PNB scam has opened up..!
Jonnes: It really sounds good, but you need to be careful enough. Din’t you hear about the allegations on ICICI bank and MD, CEO Chanda Kochhar..?
Jack: Ohhh no my friend, I need to know about it. What is the matter exactly..?
Jonnes: A whistle-blower has alleged the CEO Chanda Kochhar, of not disclosing the fact of the business deal between the Videocon Company and her husband’s, Deepak Kochhar’s company Nu Power Renewables. Even her brother in law is into this deal.
Jack: How does this matter overall..?
Jonnes: How come you don’t know that ICICI has lend an amount to Videocon in consortium of 20 other banks, and now the company headed by Venugopal Dhoot is unable to repay it..? It’s strange..!
Jack: Ohhh my God..! Is there anything fishy out there..?
Jonnes: Nothing till date is proved as such. Similar allegations were made in 2016, when the bank gave a clean chit to CEO Kochhar following the internal investigations. But this time the allegations made are too harsh and the depositors, shareholders, employees and the others associated have demanded the external investigation, to which the 7 membered board has agreed. Meanwhile, CEO Kochhar is asked to go on leave till the investigation concludes.
Jack: Chanda Kochhar is one of the top business woman, a Padma Awardee and also Deputy Chairman of Indian Bank’s Association. How can such a reputable person be part of the wrong doing..?
Jonnes: I know, it’s really hard to believe. But the independent directors of the Bank met separately on 29th last month and have decided to conduct an external enquiry instead of giving her a clean chit again this time. On the other hand, announced her annual leave to be pre-planned and has nothing to do with the enquiry.
Jack: So how do you think will this affect the investments and the market..?
Jonnes: Come on my friend, do you think after these allegations, will anyone manage to make fresh investment in the sector..? Will ‘you’ do it..? See, such incidents create a menace in the investor’s minds. What if they loose the principle amount as well? There’s a lot of risk involved. Recently the PNB scandal has shaken the market, and now these privatised banks as well..?! It is no one who can be trusted now.
Jack: Does the ICICI bank officials have anything to say on this..?
Jonnes: The media said that the bank officials are very serious about the whistleblowers allegations this time and that the external investigation team will be heading the investigation back from 2009, the year when Kochhar chaired the bank as MD CEO. Also the member committee is ready with the succession plans, in case either CEO Kochhar quits prematurely or any ill facts are disclosed in connection to the subject.
Jack: That’s really interesting. I need to know more about this Jonnes. How about meeting tomorrow at my place and discuss it further..?
Jonnes: That’s a good idea. Even I have to rush back to office. See you tomorrow then.. Bye..!
To be continued..
(PHOTO INPUT: FACEBOOK/CHANDAKOCHHAR)