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COURSE TOPIC THE HINDU EDITORIAL TIMES 6 -JUNE - 2018
TITLE A FAILURE OF GOVERNANCE
HEADLINE Why we need to go through the timeline of the uncalled-for drama at ICICI Bank
A FAILURE OF GOVERNANCE Finally, finally, the board of ICICI Bank has ordered a probe into allegations levelled against its CEO, Chanda Kochhar. Does this call for a celebration? No, it doesn't. The probe comes rather late in the day These constitute lapses in governance at a bank that has been characterised as "systemically important" by the regulator.
A FAILURE OF GOVERNANCE On May 30, the board of directors of ICICI Bank announced that it had ordered an inquiry by an outsider into allegations made by a whistle-blower. The publication of Mr. Gupta's allegations in a newspaper in March this year raised a storm. On March 28, the Chairman of ICICI Bank's Board, M.K. Sharma, issued a statement expressing the board's full confidence in Ms. Kochhar. In April, media reports said that Mr. Sharma had carried out an internal inquiry in 2016 itself and had found no evidence of wrongdoing on Ms. Kochhar's part. End of story, or so the ICICI Bank board would have liked.
A FAILURE OF GOVERNANCE (SHARP QUESTIONS) Q-I) After having stood steadfastly by its CEO for over two months, why has the board opted for a probe now? -2) Is a probe by an outsider required at all? Q-3) Should Ms. Kochhar continue in office during the period of the inquiry?
A FAILURE OF GOVERNANCE In April 2012, ICICI Bank made a loan of 23,250 crore to the Videocon group. Ms. Kochhar was the bank's CEO at the time. Mr. Gupta's letter to the PM had said that Ms. Kochhar's husband had had a business partnership with the Videocon group prior to the sanction of the ICIC loan.
CONCLUSION As one distinguished(famous) banker put it to me, "Would the government have shown the same indulgence to the CEO of a public sector bank?"
TITLE LIFE IN PLASTIC
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