An article in Indian Express , regarding ICICI Bank and Chanda K, made me think harder as to whether it was applicable to other banks also. Maybe it has not yet come out in open and hence they consider themselves clean.
Now the sections from the article:
“If we (ICICI Bank) tolerate and in some cases even reward the individual or teams…who indiscriminately increased exposures to groups like Essar…no risk measure will work however strong they are…Risk measures and controls can take care of genuine mistakes, errors, oversights…. They cannot control mistakes made knowingly.”
Records show that no loan proposal went to the credit committee of ICICI Bank without discussing and being approved by Chanda Kochhar.
"Banking is very good business if you don't do anything dumb." -- Warren Buffett, chairman and CEO of Berkshire Hathaway.
"I do not think you can trust bankers to control themselves. They are like heroin addicts." -- Charlie Munger, vice chairman of Berkshire Hathaway.
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