The move by the Central Bureau of Investigation to file a case against high profile banker Chanda Kochar is bound to send shivers down the spine of the banking industry (Page 1, “ICICI loan scam: CBI books Kochhars, Videocon head”, January 25). She was considered a role model for women entrepreneurs but lost her way by doing the unthinkable — of promoting her husband’s business interests. Whatever be the final outcome, nothing can take away from the able leadership she gave to the bank she once headed. While there appears, prima facie, a question of conflict of interest, it also brings to the fore the role of the board which ratified the decisions taken by those within the bank who sanctioned loans. Can only a few individuals be singled out when the joint stock system works under the principle of collective responsibility? What effective checks and controls are there in place to deter such transgressions from happening? Banking authorities have to frame suitable guidelines for accountability and transparency in operations. The statutory auditors have also failed to bring to the notice of shareholders the conflict of interest while certifying the corporate governance report forming part of the annual report.
V. Subramanian,
Chennai
