Prabandhan: Indian Journal of Management

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ICICI Bank Ltd. - Quintessence of Corporate Governance Failure and Board Ineffectiveness


Affiliations
1 Fulltime Ph.D. Scholar, Amity Business School, F - 3 Block, Amity University, Sector - 125, Noida - 201 313, Uttar Pradesh, India
2 Professor, Amity Business School, F - 3 Block, Amity Uiversity, Sector - 125, Noida - 201 313, Uttar Pradesh, India
3 Professor, Institute of Management Technology (IMT), Raj Nagar, Ghaziabad - 201 001, Delhi NCR, India
     

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The case study emerges from a controversy in which Chanda Kochhar, ICICI Bank’s former CEO, was alleged to have violated related party transactions at the behest of her husband, Deepak Kochhar. The bank had granted various loans to an associate of Deepak Kochhar, who in turn extended certain favors to Deepak Kochhar during Chanda Kochhar’s tenure as CEO. Do the loan approvals in banks have any ethical dilemmas attached to them? What is a conflict of interest? What is an enforceable quid-pro-quo? What are internal financial controls, and if these controls are robust, can they mitigate risk in an organization? This case study sought to answer these questions. Finally, the court found Chanda Kochhar liable for all allegations against her, marking a historic moment in Indian banking history.

Keywords

Corporate Governance, Board Diversity, Ethics, Banking, Women Director.

JEL Classification Codes: G21, G30, G34, G39.

Paper Submission Date : May 10, 2021 ; Paper Sent Back for Revision: October 15, 2021 ; Paper Acceptance Date : October 30, 2021 ; Paper Published Online : December 20, 2021.

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  • ICICI Bank Ltd. - Quintessence of Corporate Governance Failure and Board Ineffectiveness

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Authors

Surbhi Jain
Fulltime Ph.D. Scholar, Amity Business School, F - 3 Block, Amity University, Sector - 125, Noida - 201 313, Uttar Pradesh, India
Teena Bagga
Professor, Amity Business School, F - 3 Block, Amity Uiversity, Sector - 125, Noida - 201 313, Uttar Pradesh, India
Rashmi Aggarwal
Professor, Institute of Management Technology (IMT), Raj Nagar, Ghaziabad - 201 001, Delhi NCR, India

Abstract


The case study emerges from a controversy in which Chanda Kochhar, ICICI Bank’s former CEO, was alleged to have violated related party transactions at the behest of her husband, Deepak Kochhar. The bank had granted various loans to an associate of Deepak Kochhar, who in turn extended certain favors to Deepak Kochhar during Chanda Kochhar’s tenure as CEO. Do the loan approvals in banks have any ethical dilemmas attached to them? What is a conflict of interest? What is an enforceable quid-pro-quo? What are internal financial controls, and if these controls are robust, can they mitigate risk in an organization? This case study sought to answer these questions. Finally, the court found Chanda Kochhar liable for all allegations against her, marking a historic moment in Indian banking history.

Keywords


Corporate Governance, Board Diversity, Ethics, Banking, Women Director.

JEL Classification Codes: G21, G30, G34, G39.

Paper Submission Date : May 10, 2021 ; Paper Sent Back for Revision: October 15, 2021 ; Paper Acceptance Date : October 30, 2021 ; Paper Published Online : December 20, 2021.




DOI: https://doi.org/10.17010/pijom%2F2021%2Fv14i12%2F167457