Chanda Kochhar was a familiar face who frequently appeared on the covers of Forbes and Fortune. She is a Padma Bhushan recipient, a pioneer of the nation’s retail banking revolution, a celebrity CEO, and an icon for women. She played a key role in turning ICICI Bank into the largest private sector lender in the nation.
The Central Bureau of Investigation (CBI) detained Chanda Kochhar and her husband Deepak in relation to the suspected fraud and irregularities in loans approved by ICICI Bank to businesses belonging to the Videocon Group.
After accusations of corruption and quid pro quo while approving loans to the now-bankrupt Videocon Industries, her employment at ICICI Bank came to a sudden end in 2018 when she sought early retirement.
She was accused of engaging in conflict of interest, failing to disclose information, and giving loans to Videocon in exchange for something. In actuality, she was the first woman to lead a significant lender in the nation.
Kochhar, who was a favourite of former company chairman KV Kamath, joined ICICI Bank in 1984 as a management trainee. When it became a commercial bank in the early 1990s, she worked her way through the ranks to play a significant role in the organization’s transformation into a lender with a retail focus.
Despite a strong leadership bench, she was picked in 2009 to succeed Kamath as managing director and chief executive. Shikha Sharma, the former Axis Bank CEO and her superior in the organisation, left as a result of her advancement. She served as the bank’s chief financial officer and an important part of the management team before being promoted to the corner office.
Only one bank run occurred while she was in charge, which resulted from her tight control over the institution, which put an end to all unfavourable news.She declared a new policy of focusing mainly on well-rated customers after an RBI assessment in 2015 uncovered a sizable quantity of under-reported junk assets with the bank.
Despite having championed numerous humanitarian causes, it was her inspirational ascent to the top that was most respected.
She came to characterise ICICI Bank over the years, and six months after the initial charges of improper behaviour, the company announced her formal departure. The board was compelled to conduct an independent investigation into the matter before she was placed on indefinite leave.
She was fired from the bank as a result of a loan to Videocon and commercial liaisons between its promoter Venugopal Dhoot and her husband Deepak Kochhar. When ICICI Bank provided a loan to Videocon as part of a consortium, Dhoot did not disclose that he had invested in and then sold a power company promoted by the power couple.
She had the board’s full support at first, but as the list of accusations continued rising, she found herself on her own. Finally, she was exposed by a whistleblower’s allegation.
The bank first cleared her, but later a retired judge’s independent investigation was begun, and Kochhar was placed on indefinite leave. In order to manage the daily operations, Sandeep Bakhshi was appointed chief operating officer.
Before Kochhar’s term ended in March 2019, there were still six months left. Bank CEOs in the private sector are permitted to work until they are 70. Her resignation offer was accepted immediately.
When she took charge, ICICI Bank was the second-largest institution in the system and the biggest among its competitors in the private sector. It had fallen to third place overall in the sector by the time she resigned, making it the second biggest lender in the private sector behind HDFC Bank.
