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

Authors

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

DOI:

https://doi.org/10.17010/pijom/2021/v14i12/167457

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, Paper Acceptance Date, October 30, Paper Published Online, December 20, 2021.

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.

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Author Biographies

Surbhi Jain, Fulltime Ph.D. Scholar, Amity Business School, F - 3 Block, Amity University, Sector - 125, Noida - 201 313, Uttar Pradesh

ORCID iD : https://orcid.org/0000-0003-3233-4286?lang=en

Teena Bagga, Professor, Amity Business School, F - 3 Block, Amity Uiversity, Sector - 125, Noida - 201 313, Uttar Pradesh

ORCID iD: https://orcid.org/0000-0002-3723-5132?lang=en

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Published

2021-12-21

How to Cite

Jain, S., Bagga, T., & Aggarwal, R. (2021). ICICI Bank Ltd. - Quintessence of Corporate Governance Failure and Board Ineffectiveness. Prabandhan: Indian Journal of Management, 14(12), 8–18. https://doi.org/10.17010/pijom/2021/v14i12/167457

Issue

Volume 14, Issue 12, December 2021

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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