It is unlikely that she would have participated in the credit committee or board meeting if she did not see the deal as professionally correct. Recklessness is not her attribute. If so, the chairman was right in exonerating her expeditiously given the impact on the morale of the staff and Kochhar herself.
However, banking is a profession involving money. Bank personnel should not just be honest, they should be seen as honest. Kochhar compromised her position in popular view by not recusing herself from that meeting. For the same reason, an objective enquiry, to be conducted by an independent committee appointed by the board of directors, may be held giving her an opportunity to present her case in accordance with the principles of natural justice. She might be asked to go on leave only if she tries to obstruct the enquiry.
Shikha Sharma’s case is different from Kochhar’s. The former is being punished for proven inefficiency, but the latter is under cloud for lack of probity (conflict of interest). The management of Axis Bank should thank the Reserve Bank of India (RBI) for pre-empting its decision to extend her term. Will the RBI show the same alacrity when it comes to the distressed assets overburdening public sector banks?
Y G Chouksey Pune
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in