Anjana Menon
CEO, Content Pixies
ET CONTRIBUTORS|
Updated: Apr 24, 2018, 02.55 PM IST
Dear Mrs Kochhar,
In the last few weeks, ever since it emerged that your husband and your brother-in-law may have benefited from your position as the head of India’s largest private bank, you’ve been silent. You’ve been mum through the embarrassing interrogation of your brotherin-law by India’s investigative authorities. You’ve skipped events where you were expected and melted behind your board members. We’ve missed your usual front-row hustle in those exquisite sarees and jewels.
Longing aside, let’s look at the allegations first. It seems that while you were heading ICICI BankNSE 1.68 %, as CEO, your bank, as part of a consortium of lenders, loaned some Rs 32 billion to the Videocon Group. The chairman of the group, Venugopal Dhoot, a well-known businessman, is no stranger to investigative agencies. In 2011, he was questioned by the Central Bureau of Investigation (CBI) when allegations broke about the unfair grant of telecom licences to some Indian businesses.
Anyway, a year later, your bank unhesitatingly lent him money. He was, by then, also a familiar business partner of your husband’s. You made no mention of this important detail. It seems you also completely forgot that you, your family and he held shares in Credential Finance at some point, even though that was before you were elevated to the top job at ICICI Bank. You likely knew Dhoot well, too well to not have had a fleeting feeling there was a conflict of interest in being involved in a loan process to his firm.
Now, as shareholders sit on a steep haircut, it’s alleged your husband has ended up owning a business, with chump change given by Dhoot, worth Rs 640 million.
In the meantime, it’s also emerged that your brother-in-law has established a thriving business in Singapore, a bruisingly competitive financial hub. He’s done well, allegedly gaining in some measure by restructuring loans, including that of the Dhoots.
In short, it appears, while you were at the helm, those close to you may have carved out several pieces of the ICICI goodwill pig and helped themselves to some choice cuts.
The remains of the meal smell a bit foul, and that’s why investors have dumped ICICI shares. Collectively, it’s shorn billions off the value of the stock and left us poorer. Your board is in denial of this. In fact, reports suggest that your chairman conducted a “secret” investigation into these allegations and cleared you. Clearly, he has a limited knowledge of propriety in a publicly held firm.
As you scan the headlines you’ve been making, it also seems you missed the little one from Martin Sorrell of WPP. And the lessons in it. Sorrell resigned on allegations of improper behaviour yet to be proven. WPP is all Sorrell, more than ICICI will ever be all you. He built a wire basket maker into the world’s largest advertising agency in a 33-year slog.
Yet, as he quit, he wrote to employees, “I see that the current disruption we are experiencing is simply putting too much unnecessary pressure on the business…. That is why I have decided that in your interest, in the interest of our clients, in the interest of all shareowners, both big and small, and in the interest of all our other stakeholders, it is best for me to step aside.”
It’s something you need to read over and over again. You need to put bank, shareholders and depositors above the love of your job, because institutions outlive individuals. It’s like that in business and you know it only too well.
You need to step aside because large institutions have questioned why you are still around, why your board will not allow an external probe.
In a letter to you daughter that was widely quoted a year ago, you wrote, “Don’t compromise on the values of fair play and honesty.” The time has now come for you to act in the spirit of that, a bit like Sorrell did.
Please resign, Mumma Kochhar, because that’s what would set a good example. Be fair to investors, and shareholders.
Irrespective of what investigations may reveal, you’ve lost shine because you have failed miserably in putting ICICI’s reputation before yours. India’s biggest private lender deserves a statesman leader, not a general in hiding.
Yours truly,
Shareholders
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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