Fall from grace: Chanda

Kochhar or ICICI board?

Group A
Aayushi Jhawar: 201812055
Abhinav S: 201812056
Aditiya Nigam: 201812057
Akanksha Agrawal : 201812058
Akanksha Gohil: 201812059
Akshay N: 201812060
Akshay D: 201812061
Chanda Kochhar Corporate
Governance Case
▪
Introduction
Shareholder activist Arvind Gupta writes to Prime Minister Narendra Modi on
March 15, 2016, red-flagging "the illicit banking and commercial relationship
between Videocon Group of Venugopal Dhoot and ICICI Bank's MD & CEO
Chanda Kochhar's family ".
▪ The agency alleged that ICICI Bank sanctioned six high-value loans to various
Videocon companies between June 2009 and October 2011, starting soon after
Kochhar took over as CEO. In fact, she was reportedly a part of the sanctioning
committee which had approved a loan of Rs 300 crores to Videocon International
Electronics Ltd (VIEL) and Rs 750 crore to Videocon Industries Ltd (VIL).
▪
Introduction
The former amount was reportedly disbursed into the VIEL account on September
7, and according to the CBI, the "very next day" Dhoot had transferred Rs 64
crore from VIL to NuPower Renewables Limited, the company owned by her
husband Deepak Kochhar.
▪ Kochhar, her husband and Dhoot for alleged cheating and corruption in
sanctioning loans to the Videocon Group, which caused a loss of Rs 1,730 crore
to the bank. Days later, the Srikrishna panel submits its report, which finds
Kochhar guilty of violating various regulations. The lender then decides to stop
all unpaid retirement benefits and also recover bonuses worth Rs 9.82 crore paid
to her since 2009.
Chief Executive Officer (CEO)
▪ She was the first woman to head an Indian bank, having fought
out one of the toughest succession battles in corporate India. For
over a decade she consistently ranked among the country's most
powerful women
▪ In 2014, she has been named among fortune's 50 most powerful
women in business women in the fourth consecutive year. Under the
leadership of Kochhar, ICICI has transformed itself from corporate
bank into a retail bank, and now a universal bank.
▪ In this case she was the central player, as it was pointed put that she
used her position in sanctioning of loans worth Rs 4250 Cr to
Videocon which in turn funded her husband’s firm. Since then, her
work has been under question.
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