Interview of Ms. Chanda kochar, MD & CEO - ICICI Bank
1)We believe you join ICICI GROUP in 1984 as Management Trainee. What prompted you to join ICICI? Who were Chairman and Managing director of ICICI at that time?

Campus recruitment was not in practice in the Eighties. Toppers from elite institutions were called for interviews. As a topper from Jamnalal Bajaj Institute (for MBA), I, too, was called in for an interview at ICICI office in Churchgate. It was a reputed company and was in the financial services sector – it was also in the next building to my institute, and had always been a symbol of aspiration for me. My first interview was with Mr Kamath. Mr S. S. Nadkarni was the Chairman and Managing Director of ICICI Ltd at that time. Next year in 1985, Mr N. Vaghul took over as Chairman and Managing Director of the company.
2) What role your present organization played in shaping your career path i.e Tell us about Organization’s Uniqueness, particularly role of a lady executive.

ICICI Bank has a strong culture of empowering employees, encouraging entrepreneurship and innovation. By following meritocracy, gender neutrality and linking rewards to performance, the Bank has been able to motivate its employees to perform to the best of their abilities while providing them with a platform to realize their full potential.
I firmly believe that a woman does not need any special privileges to do well in any field in any particular organization. All that is required is a level-playing field where merit is the criteria for success. Any person who is capable and hard working, irrespective of gender, would then shine through. ICICI Bank with a meritocracy culture is a very good example of this phenomenon and we have several examples of women leaders in responsible positions across the organization.
3) Can you consider your organization as a change agent in banking sector in India? What difficulties you have observed in your Organization while dealing with regulatory authorities in India? What is your feeling about regulatory authorities outside India while establishing offices in different countries?

All regulators, both in India and abroad, are important. They are one of our key stakeholders and we hold them in high esteem. The Indian banking sector functions in a well-regulated environment and as such we have fairly frequent interactions with regulators. Our relationship has always been positive and healthy. ICICI Bank has always strived to innovate and bring new perspectives to the financial sector in India. We believe in challenging the status quo and advancing banking though regular product and process innovations
4)What according to you was most challenging event in your career path, socially as well as economically?

There have been several challenges at ICICI Bank. One such would be when I was assigned the responsibility of the retail business in 2000. I was handling corporate banking which constituted a very large part of the balance sheet whereas retail was still very nascent. However, I took it as a challenge and a few years down the line the retail business became the major contributor to the growth of the bank’s balance sheet. Indeed, this entire retail thrust was new not only for me but for the ICICI group and even the country as a whole.
5)How our country’s present Banking system is in placed? Is it well established and well regulated or there is feeling of over regulation?

Indian banking sector is very strongly placed. India has ensured that its regulatory checks and balances prevent any undue exposure to risk and the financial sector is prepared to cushion adverse situations. The fact that industry has been mostly insulated from the risks of international financial markets is now being seen as a testimony of the prudence exhibited by our policy makers and regulators.
6)How would you term year 2008 crisis in USA and other developed countries for Banking sector and level of confidence on the regulators in respective countries?

The last year has been an exceptionally challenging year for the global economy and the financial sector. India has weathered the global storm with a high degree of resilience and we expect the economy to return to a robust growth path ahead of other economies that are experiencing recessionary conditions. While governments and regulators around the world have taken various curative measures to contain the crisis, it is imperative that utmost care is taken to ensure that regulators do not pursue policies that result in over-regulation in the financial sector. I think most central banks and regulators have dealt with the crisis in a proactive and balanced way.
7)What lesson your organization learnt out of developed countries financial crisis?

The global financial crisis has reinforced what we, at ICICI Bank, have always believed in — that an organization needs to be nimble enough to adapt and respond to changing needs of the economy, the dynamics of business environment and the expectations of stakeholders. We look at every challenge as an opportunity. Given the challenges that the global financial services sector is going through, Indian banks, including us, will play a much bigger role in driving India’s growth. ICICI Group sees before it a wide opportunity spectrum: increasing household incomes and consumption in both rural and urban India; significant industrial and infrastructure investment potential; and the vast Indian Diaspora spanning the globe.
8)Is Reserve Bank of India independent enough to regulate banking sector or you feel there is interference from Ministry of Finance?

RBI is an independent organization with high standards of regulation. RBI’s effectiveness and proactive management of risks in the system is now being widely acknowledged.
9) What are your thoughts about governance in an organization and role of independent directors in shaping the progressive path of an organization?

Our corporate governance philosophy encompasses not only regulatory and legal requirements but also several voluntary practices aimed at a high level of business ethics, effective supervision and enhancement of value for all stakeholders. At ICICI Bank, there are various board committees that are headed by independent directors. Independent directors bring in their knowledge and expertise to an organization and play a key role in enhancing value for all stakeholders. Indeed, constructive tension between independent directors and executive directors is one of the pre-requisite for good corporate governance.
10)What is your opinion about Inclusive growth in our country as talked by Honorable Prime Minister Dr. Manmohan Singhji and role of banking sector?

We have to engage the underserved in the process of economic growth. It is imperative to bring more and more people into the socio-economic mainstream and contribute to the full realization of India’s vast untapped potential. ICICI Bank’s commitment to inclusive growth goes beyond the financial services element which is part of our regular business operations. Our Board has established The ICICI Foundation for Inclusive growth to take forward and scale up the initiatives that we have taken up in the areas of primary education, healthcare and microfinance as well as take up new areas that require innovative interventions.
11)Is much talked ‘Micro Finance‘ concept will survive in long run?

The growth of the microfinance sector is central to the success of many development initiatives that have been undertaken to ensure long-term economic and human development of the country. An estimated 600 million Indians are currently not integrated in the economic mainstream. It is through micro-finance that one can provide universal access to basic financial services and provide these people a pathway out of poverty.
12)Where do you like to see ICICI in next 10 years in global society along with our banking sector?

The banking sector of any country is inextricably linked with its economy. In case of the Indian economy, we have the potential to achieve sustained high growth. If our economy grows at or above 8% during the next few years, the financial services sector will grow at 20% or higher. This would see the Indian economy and financial sector becoming much more relevant in the global context as well. ICICI Bank is already a significant player in the Indian economy and, going forward, we will leverage the growth opportunities arising out of the growth of the Indian economy.
13)Tell us two leader’s name as your role model?

It would definitely be Mr N Vaghul and Mr K V Kamath.
Mr Vaghul had a wealth of wisdom to share which benefited me immensely. ICICI Group’s culture of entrepreneurship and innovation, of lateral thinking, of thinking beyond the present, of thinking at scale, of ethics and good governance - these are the legacy of Mr. Vaghul.
I am personally fortunate to have had Mr. Kamath as my mentor. Under his leadership, the Bank revolutionized the way the Indian banking sector rendered financial services. Mr Kamath always identified future trends and opportunities ahead of others. He always saw beyond the immediate boundaries and looked at future horizons of growth. He not only gave the organisation a vision, but also empowered young leaders in the company to execute the vision and the strategy. He spotted leaders early and gave them exciting growth opportunities. He made ICICI that rare employer which encourages entrepreneurship and supports it with the strength of the institution.
14) Tell us something about support from your family in your career progression.

I have been very fortunate to have a very supportive family. Without their support, it would have been impossible for me to put in this dedication at my work and achieve this success. On my part too, I prioritize and try to balance work and family life effectively. Setting out priorities and then working hard to meet them would always allow anyone to devote sufficient time to whatever activity that needs their attention.
15)What message you are giving to the youth of India for their growth as well as country’s development?

India has made rapid strides in the last decade making it one of the fastest growing economies in the world. I firmly believe that the Indian economy will be among the first to recover from the current moderation that we are seeing in global markets. Our turnaround will be swifter and sharper given the strong domestic consumption, investment drivers and the entrepreneurial spirit of our people. This underlies the fundamental strength of our economy. This is truly India’s moment and I would advice the youth of this nation to seize the moment and make most of the opportunities that lie ahead. They will not only be the beneficiaries of the growth but also lead the growth.
16)How do you unwind at the end of the day for a better tomorrow?

Spending quality time with my family is my biggest unwinding mechanism.

Anand Kumar Pandey
PGDM(IIIrd Sem)