Wednesday, April 11, 2018

Chanda Kochhar: Flattered only to deceive?

Nobody expected Padma Bhushan Chanda Kochhar to place herself in a situation reeking of quid pro quo, nepotism and conflict of interest all in one. M.Damodaran, formerly of SEBI, was at his sarcastic best when he told an interviewer yesterday (Tuesday, April 10) that he never thought the Padma Bhushan Bank would descend to such depths of depravity. He calls ICICI Bank as the Padma Bhushan Bank for it produced the Padma Bhushan Trimurti, namely K.V.Kamath, N.Vaghul and Chanda Kochhar. He added poignancy to his observation by reminding that Ramesh Gelli, the creator and destroyer of Global Trust Bank had been awarded Padma Shri.

It is now reported that ICICI Bank is waiting for a direction from the regulator, RBI before deciding on the tenability of Chanda Kochhar continuing in office. Coming from ICICI Bank, this is a bit rich because this bank is not shy of violating RBI guidelines on various matters and has been penalised by RBI on several occasions. It is not clear why Chanda Kochhar does not realise that it is better to quit with whatever respect is left than to get the sack from RBI. It is a race to the bottom between ICICI Board and its MD.

M.K.Sharma, Chairman of ICICI Bank and N.Vaghul, a former chairman have sullied their reputation by rushing to pronounce that Chanda Kochhar is innocent. Chanda Kochhar herself has maintained a disturbing silence. Her husband has claimed that she is not aware of his business relationship with Venugopal Dhoot. If this is indeed true, it is too dangerous to have such a non-involved person as CEO of the bank. There ought to be a limit to spinning stories.

Shikha Sharma has acted with greater celerity in opting out of CEOship ahead of planned schedule. She has not allowed herself to become a butt of Governance jokes. Shikha's response has been welcomed, among others, by the stock market.

Chanda Kochhar's departure from ethical behaviour sets a bad example to thousands of bankers who held her in high esteem. She has miserably failed the Bagavad Gita test which says,

"Whatever action is performed by a great man, common men follow in his footsteps. And whatever standards he sets by exemplary acts, all the world pursues. (3:21) ( as translated by Srila Prabhupada)"

"Whatever a great man or woman does, others also do. Eminent people must in the public interest put forth their best virtues. Then ordinary people try to rise to that level." (Jack Hawley's translation.)

It will be in the fitness of things if the Padma Bhushan awarded to Chanda Kochhar is withdrawn and if the whistle-blower Arvind Gupta is suitably recognised.

No comments: