ICICI board recast to further unsettle investors: S Subramanium, InGovern

Talking to ET Now, Shriram Subramanium, founder & MD, InGovern, says ICICI Bank is going through a bad patch and a reputational drift.

It looks like one of India’s biggest franchises, ICICI Bank, is struggling to find a new chairman?

Yes, it is quite surprising. First of all, the fact that there is a search for a chairman would itself indicate that there is discord in the board, but whether it is because of the current allegations against the CEO or for some other reason, is not clear.

A lot of bad news may still not be out and when the change of guard happens, investors would find who actually have been favoured, apart from Essar and the VideoconNSE -4.52 % Group. Is that a concern that more and more cases, more and more linkages and more and more corporate governance and conflict of interest cases could be reported?

Definitely, ICICI is now suffering a reputational drift and if there is, in addition, an upheaval in the board that would further disconcert investors. It would really be a travesty if more cases come out or if it is said that some of the decisions taken by the management were true conflict of interest etc. Definitely, it is a bad patch for ICICI and investors would be very worried if there is discord in the board.

Link: Economic Times- June 04, 2018