The Hindu Business Line : Chanda Kochhar, ICICI Bank’s new chief

Change of guard: Mr K.V. Kamath, Chief Executive officer & Managing Director, ICICI Bank, and Ms Chanda Kochhar, who takes over as the bank's CEO on May 1 when Mr Kamath's term ends, at a press conference in Mumbai on Friday. - Paul Noronha

Our Bureau

Mumbai, Dec. 19 Backed by strong fundamentals, ICICI Bank is in a position to capitalise opportunities quickly, even in these challenging times, said Ms Chanda Kochhar, who has been appointed as Managing Director and CEO of ICICI Bank.

The bank has healthy capital adequacy and strong distribution network in retail, corporate and international segments, she said at a press conference called to announce her appointment.

Putting an end to days of speculation, the ICICI Bank board on Friday announced the appointment of Ms Kochhar as Managing Director and CEO and Mr K.V. Kamath as non-executive chairman for a period of five years, from May 1, 2009.

The bank is yet to take decision on a candidate to take over the current postion of Ms Kochhar as joint MD and CFO.

About ICICI’s future strategy, Ms Kochhar said that the bank will restructure its deposit composition by reducing its dependence on wholesale deposits and improving its CASA (current account and savings account) base.

In the current economic scenario, banks may have to take measured and smaller steps that match their ability and monitor them to meet changes in the environment. But India is fundamentally stronger and as the global scenario turns around, the changes in India would be faster.

This fiscal, ICICI Bank is likely to see loan growth of between 5 and 10 per cent, Ms Kochhar said.

“In the current environment and at these rates, loans are affordable only to a certain sector of society. So the number of borrowers would be lower,” she said.

There are clear signs that banks’ cost of funds and lending rates will come down, but it is difficult to say when, Ms Kochhar said. The trends are visible in the falling yields of government securities, corporates bonds and wholesale deposits.

Mr Kamath said India is moving towards single-digit lending rates and double-digit growth rate in two years time.

When asked how the bank will deal with run on its reputation it faced during this year, Ms Kochhar said the bank’s efforts will be to create confidence, communicate and clarify and to keep performing to the best of its ability.

Related Stories:
Balanced approach
Fillip to faster, more inclusive growth

More Stories on : Private Banks | People | ICICI Bank Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page