Page 44 - Tehelka Issue 13 - July 15, 2018

column

ICICI Bank CEO goes on

leave amid high drama

News & Newly elevated COO Sandeep Bakshi, who was subordinate to
Kochhar at the bank, will continue to report to her after she resumes
views office as hunt for new chairman begins
Bharat hiteshi
he latest decisions at the an investment from a Videocon group
Hiteshi is an ICICI Bank appear to be company as a quid pro quo for a loan
independent journalist- a travesty of justice. One from the bank. It was followed by a fresh
turned-author and a important move relates to allegation by a whistleblower Arvind
political commentator. elevating Sandeep Bakshi Gupta that the bank favoured the Ruias
The views expressed T as Chief Operating Officer of Essar for allegedly round-tripping
are his own of the Bank. So far so good as it seems investments into NuPower.
that the controversial Managing Direc- The ICICI Bank’s troubles are rooted
tor and Chief Executive Officer Chanda in a 2016 complaint by an investor, who
Kochhar has met her nemesis over alleged a quid pro quo deal between
the issue of conflict of interest as her Chanda Kochhar’s immediate fam-
husband and brother-in-law had tried ily members and the Videocon group,
to help Videocon promoters. However, a which got a 3,250-crore loan from it.
close scrutiny reveals that Chanda Koch- This “conflict of interest” complaint re-
har remains powerful as a statement surfaced in the public domain this year.
issued by the bank says that Bakshi “will With the CBI and later the stock market
report to” Kochhar, “who will continue in regulator SEBI swooping in, the issue
her role as MD & CEO” of the bank. It did of whether the bank had failed to make
not miss even this opportunity to praise adequate disclosures about its dealings
the controversial CEO by attributing her with the borrower and a firm related to
decision to go on leave according to “the Chanda Kochhar’s husband made head-
highest levels of governance and corpo- lines and raised eyebrows.
rate standards”. Insiders at the Board meeting told
Though under pressure from regulat- Tehelka that Chanda Kochhar when told
ing agencies, the ICICI Bank has reluc- to proceed on leave did not go without
tantly agreed to set up an independent making a fuss and showed lot of resist-
inquiry and has made Sandeep Bakshi ance. In the melee, a high drama ensued.
as COO, but the board’s recent decision Kochhar reportedly adopted a belliger-
seems to be nothing but an eyewash. ent stance. She did not accept the deci-
The appointment The board’s latest stand makes it clear sion meekly, it is learnt. Chanda Kochhar
has been sent on forced leave till the
that Bakshi, subordinate to Kochhar in
of Girish Chandra the ICICI Bank, will continue to report to completion of an independent investiga-
Chaturvedi as her. The leverage given to him is only till tion into the charges against her.
Kochhar would remain on leave as he
chairman comes at would report directly to Board till then. High Drama at Board meet
a crucial juncture CBI probe At the Board meeting, Chanda Kochhar
questioned why she was being asked to
when the ICICI Bank It may be noted that the Central Bu- go on leave. However, when the chair-
is battling one of its reau of Investigation (CBI) has already man of the bank’s largest shareholder,
LIC, insisted on the course of action, she
registered a preliminary enquiry into
worst management allegations that the ICICI Bank chief had to budge. The independent direc-
crisis ‘s husband Deepak Kochhar-owned tors of the bank too gave in and joined
the course raised by the LIC boss. She
company NuPower Renewables received

Tehelka / 15 july 2018 44 www.Tehelka.com

44-45 Column Hiteshi.indd 2 03/07/18 4:50 PM