Letter to BS: If Chanda Kochhar is innocent, say so boldly

Apropos your front page report, Videocon loan case: Govt nominee to stay away from ICICI Bank board meet by Somesh Jha (May 9), the waiting game being played out by the ministry is not helping either the cause of justice or that of governance. By abstaining from three successive board meetings, the government nominee has — perhaps unwittingly — sent a wrong message to stakeholders, particularly to the millions of small depositors, who are shaken by what is going to happen to their life's savings parked in the venerable 

institution.

The significant gain in the share price of the company — perhaps brought about after provisioning of some non-performing assets (NPAs) — is certainly some relief but only just that. People are still worried about the fate of the bank’s CEO and the bank itself. It is the duty of the government and the regulators to speedily resolve the issue and either clear the CEO unconditionally or punish her suitably.

The government might be a minority shareholder in the bank but it still has the responsibility to ensure that all the approaches to deal with the issue are pursued speedily and a logical solution arrived at. It is surprising that the government hasn't even written to 

the RBI.

Then we have the Securities and Exchange Board of India (Sebi), another powerful regulator that can examine books of all companies and order corrective actions required. Why is Sebi silent on the matter? 

Prima-facie, it is difficult to believe that (a) there was no unholy nexus between the Dhoot group and Deepak Kochhar and (b) CEO Chanda Kochhar was not aware of the huge loans sanctioned to Dhoots on one hand and their proximity to her husband on the other. Only the very gullible will buy that fairy tale.

For heaven’s sake enough is enough, several months have passed when the news first broke out. By remaining immobile — “silence will mean validating the board’s view” and the fear of being overruled — nothing will get solved. If the good lady is innocent, say so boldly. If she is guilty, send out a clear message to other bank chiefs.

Krishan Kalra  Gurugram

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