ICICI Bank CEO Chanda Kochhar refuses to comment on tenure, probe into loans to Videocon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chanda Kochhar, the embattled chief executive officer of ICICI Bank, on Monday refused to comment on probing questions from reporters on her tenure at a press conference called to announce the bank’s fourth quarter results.

“In results presentations, we do not discuss about a CEO’s tenure,” said Kochhar.

Kochhar has in recent weeks faced a flurry of allegations over the alleged conflict of interest over ICICI Bank providing loans to Videocon Group.  Media reports said Videocon Group chairman Venugopal Dhoot invested in Nu Power Renewables, a company that Deepak Kochhar, the husband of the ICICI Bank CEO, owns.

The investment happened soon after Videocon secured a loan from a consortium of banks, including ICICI, according to the reports. The Central Bureau of Investigation has reportedly launched a preliminary investigation into Deepak Kochhar as well as officials at ICICI Bank and Videocon.

Given that the ICICI Bank earnings were being announced against this backdrop, the main focus of the press conference was anything but the earnings. But Kochhar dodged most of the questions regarding the investigation by referring to the board’s comments made on March 20.

Despite calls for Kochhar to step down, ICICI, India’s third-largest lender, said its board stands by the CEO.

On the Videocon probe, Kochhar said the bank had fully cooperated with the regulatory authorities and investigating agencies and will continue to do so in the future.

ICICI Bank reported that its fourth quarter net profit fell 50% to Rs 1,020 crore.

Here is the transcript from the press conference on Monday:

We understand and we acknowledge what the Board has said on its stance on the Videocon case but given the fact that investigations externally are still on. In the interest of maintaining the stability of the bank, has the Board at any point discussed in bringing in an interim CEO or laid out a succession plan in the event of a change in leadership?

I think the Board has made its stand very clear in the March 20^th Board meeting. And as far as the operations of the bank are concerned, you can see the stability, the enhancement and the franchise and the results.

Also Read: Would have liked greater clarification on Videocon loan, says former ICICI Bank chairman

Would you stay on till the end of your term in March 2019? Is that a given?

Well, I think today we are talking of Q4 results. We have never talked about any CEO’s tenure in any results presentations.

Also Read: I’m only focused on my job, says ICICI Bank CEO Chanda Kochhar

In the past one and a half months, we have seen this significant erosion of investor’s wealth. What steps is ICICI Bank taking to address this?

We focus on our performance and I think, the markets respond to the performance. I think we have been focusing on 4×4 agenda, and as I mentioned, the past few years, in terms of asset quality have been challenging but at the same time we are focused on de-risking our balance sheets and what we are very clear about is that the steps that we have taken in the past few years, as I have mentioned about changing the proportion of our loan mix, improving the ratings of the incremental portfolio, reducing the concentration risks, have created now a very strong position which will allow us to now attain growth with stability.

This time investor’s confidence seems to be shaken, not so much by asset quality issues but more about perceived loopholes as far the corporate governance of the bank is concerned. Is this something that will be taken up by the Board meeting tomorrow, where you will evaluate strategy?

Tomorrow’s Board meeting is a usual Board meeting that happens every year where we focus on strategy, budget and planning for the coming year.

There have been plenty of questions raised by news reports wherein there are disputes within the Board and members not agreeing with each other. Do you think it is prudent for an ambient CEO to take a step back, allow for an outside investigation to conclude and then take over the bank again?

First, I would say that the Board has made its stand very clear and second is that ICICI Bank has always fully cooperated with all the regulatory and investigating agencies in any matter and we would continue to cooperate.

Also Read: Videocon-ICICI Bank loan controversy: Here’s what experts have to say

The Board didn’t discuss the entire Videocon controversy at today’s meeting. Tomorrow as well you plan not to discuss it. Why at a time like this when it is of utmost concern to shareholders, do you think, the Board ever plans to revisit this controversy anytime soon?

I would repeat what I had said, the Board has made its stand very clear.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow