CHANDA KOCHHAR

INTRODUCTION• Chanda kochhar is currently the Managing Director (MD) and

chief Executive officer(CEO) of ICICI Bank. ICICI Bank is India’ s largest private bank and overall second largest bank in the country. She is widely recognised for her role in shaping the retail banking sector in India and for her leadership of the ICICI Group, as well as her contributions to various forums in India and globally.

• In 2014, She has been named among Fortune’s 50 most powerful women in business for the fourth consecutive year. Under the leadership of kochhar, ICICI has transformed itself from corporate bank into a retail bank , and now a universal bank.

Early Life• Chanda kochhar was born in Jodhpur, Rajasthan on November

17, 1961, but was raised in Jaipur, Rajasthan.• She joined Jai Hind College in Mumbai for a Bachelor of Arts

degree.• After completing her graduation in 1982, she pursued cost

accountancy (ICWAI).• Later ,she did her Master’s degree in management studies from

esteem Jamna Lal Bajaj Institute of Management Studies in Mumbai from where she received a Wockhardt Gold medal for excellence in Management Studies. In the same year, she won the J.N Bose gold medal for cost accountancy.

• 1984 was the year in which Mrs Chanda Kochhar started her professional career by joining “The Industrial Credit and Investment Corporation of India” as management trainee.

CAREERChanda Kochhar started her professional career in the year 1984 and can be divided into three phases. 1984-1993The first phase is that from year 1984-1993. It was the year 1984 that she joined “The industrial credit and investment corporation of India Ltd”(ICICI ltd) as a management trainee. In her initial year in ICICI , she handled project appraisal and monitoring and various projects in petrochemicals, textile and cement and paper. 1993-2006The second phase was from 1993-2006. It was in this intermediate phase of her life that she was sent to be a part of a core team of bank and set it right. After 10 years of working in the same bank she was given the responsibility to be the General Manager in 1994 followed by which she became the Deputy General Manager in the year 1996. She headed the infrastructure Industry Group of ICICI.

Continued…In 1999, she was promoted as the General Manager and became the head of ICICI’s ‘Major Client Group’ which handled relationships with top 200 clients of the organisation. In the same year she started handling the strategy and E-commerce divisions of ICICI. Under Kochhar’s leadership, ICICI began its retail business in 2000 and in the next five years ,became ‘The biggest retail financer in India. In 2001, she became the Executive Director of ICICI Bank. 2006-till nowFinally the third phase started in 2006 and continuing till now. In April 2006, Chanda kochhar was given the designation of Deputy Managing Director of ICICI Bank . Using her unique skills she started to handle both international and corporate business of ICICI Bank .Her designation was also advanced to Chief Financial Officer(CFO),Joint Managing Director(JMD) and also the Official spoke person from 2007 to 2009.

Continued…Also Mrs Kochhar is a director of different companies of ICICI Group. She is the honourable chairperson of ICICI Bank Eurasia Ltd Labiality Company. Today, being the MD and CEO of ICICI, She is also director of ICICI International Ltd and ICICI Prudential Life Insurance Company Ltd. In addition to her responsibilities at the ICICI Group, Mrs Kochhar is a member of the Prime Minister’s Council on Trade and Industry, the Board of Trade, High level Committee on Financing and Infrastructure , US-India CEO Forum and UK –India CEO Forum. She is a member of the Indian Council for the Research on International Finance and International Monetary Conference. She was co-chair of the World Economic Forum ‘s Annual Meeting in 2011.Kochhar ‘s turnaround of ICICI has earned her many accolades and reward.

PERSONAL LIFE

When Chanda Kochhar was born her family was dwelling in Jaipur. Her father was a known figure in Jaipur and was a principle at an engineering college. The name of his father was Professor Roopchand Advani. Chanda Kochhar was a brilliant student and dreamt of becaming IAS Officer .However, destiny has something else for her. Her father died when she was just thirteen and then her mother decided to shift Mumbai along with her three children . Chanda kochhar came to mumbai and started to see business world from close proximity. She did her graduation and post graduation in Mumbai. She is married to Deepak Kochhar , who is a successful wind energy entrepreneur. Both of them were in the same batch at Jamna Bajaj institute from where kochhar did her MBA. He has always supported Chanda to the hilt. She believed that major part of her success story is because of her husband.

continued….

Chanda kochhar has one son and one daughter, Arjun and Aarti Kochhar. Aarti has just completed her engineering and Arjun is still a school going boy and he is a sport enthusiast.

Aarti has recently been engaged to Aditya Kaji

Mentors to whom she owes her success

During her career, Kochhar drew on the lessons learnt from ICICI’s iconic Chairman Narayan Vaghul, as well as Kamath, both of whom have deeply influenced her career. Starting at ICICI around the same time Vaghul came to the institution, Kochhar made her mark early, being confirmed in her job three months ahead of schedule. Vaghul identified Kochhar’s talent quickly , and included her in a select team to drive the computerisation of ICICI. Several years later, Kochhar was instrumental in establishing the new banking entity in 1993 , which later become gaint as it is today. In between ,she had taken on several roles at the institution, heading the infrastructure finance and corporate banking business in ICICI , and building the retail business in 2000.By 2006-07,Kochhar was leading ICICI Bank’s corporate and international banking business at the time when Indian companies were

Continued…aggressively making a mark on the global mergers and acquisition landscape. Between 2007 and 2009, she had consolidated her position as its joint MD and CFO. Mr Vaghul had a vision and he picked Chanda Kochhar to lead the banking initiative.Kochhar peers hold her in high esteem, Mr Vishwavir Ahuja who is a former Indian head of Bank of America holds that Chanda is a very bright capable leader with admirable grit and determination. Her personality traits are responsible for the success she has achieved. Kochhar’s mother was a powerful role model for her. Her family was a sindhi family, a Hindu group whose member lost their land and wealth when they fled from Pakistan to India following India’s partition in 1947. After her father died her mother worked as a designer in a clothing boutique to support her three children. She was a great source of inspiration for her.

Profile of ICICI BankTYPE PRIVATE BANK

Position Second largest Bank in India

Total Asset Rs 5,367.95 billion (US $ 99 billion) as on 31st march,2013

Profit After Tax Rs.83.25 billion (US $ 1,533 million)

Network 3,620 branches and 11,292 ATM’s in India and has a presence in 19 countries

Subsidiary in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia and their UK subsidiary has established branches in Belgium and Germany.

Headquarter ICICI Bank Towers,BandraKurla,Mumbai, India

ICICI Bank(formerly Industrial Credit and Investment Corporation of India).ICICI Ltd was established in 1955 by the World Bank, the Government of India and the Indian Industry, for the promotion of industrial development in India by giving project and corporate finance to the industries in India. ICICI Bank has grown from development bank to a financial conglomerate and has become one of the largest public financial institution in India.ICICI Bank has financed all major sectors of economy.

Kochhar’s strategy to keep ICICI on growth trends

• Things have changed quit dramatically for ICICI Bank which today has a asset size of Rs.5.36 lakh crore up from Rs3.79 lakh crore in 2008-09, when Kochhar took charge. The proportion of low-cost current –account-saving account (CASA) deposits has grown substantially from 28.7 per cent of total asset in 2008-09 to 43.3 per cent in 2012-13.

• The focus on better management of risk has led to a dramatic improvement in credit quality and credit cost or the cost of provisions the bank makes against bad loans – declined from 2.2 per cent of total asset to just 0.8 per cent in financial year 2012-13.

• A mixed strategy is followed, on one hand cost were being cut and high-cost deposits were being shed. On the other , the branch network was being expanded. Internally ,from a product centric model where segmentation was done on the basis of deposits, home loans ,car loans and the like, the bank moved to customer segmentation.

• For now, as the economy slow down, Kochhar hopes the bank with its distribution network, funding profile, knowledge and skill base, will continue growing at 2-3 per cent higher then the industry average.

“The bank’s substantial branch expansion in the past 24 months is expected to result in a more favourable deposit mix going forward.It expects the growth in advance for FY 2014 to be 2-3 per cent above industry growth which at times looks achievable.• Recently, in a seminar on ‘Financial Services –a key driver for

economic growth’, she expresses the need to bring “growth and vibrancy” in the economy to make India a financial hub. She insisted that growth and vibrancy in the domestic economy includes stable levels of fiscal deficit and current account deficit and bringing inflation under control.

“The next set of initiative would be regarding regulation , legal environment and taxation. It is not only the existence of such regulatory and legal environment that is important but the consistency in policy and taxation law is important ,she said.

Hinting at the need of swift government, Kochhar said, “getting small things like Visa or driving license should be made easier as we in financial sector are dealing with financial regulation and tax constraints

Awards and Accolades

2014• Named among fortune’s 50 most powerful women in business for

the fourth consecutive year.• Received the “Mumbai women of the Decade.”

2013• Ranked as the most powerful women in business in India for the

third consecutive year in fortune’s list of ‘50 Most powerful Women in Business: The Global 50.’ She is among the four most powerful women in business in the world,according to the list.

• Conferred the “AIMA JRD TATA Corporate Leadership Award” 2012

Continued…• Recipient of the 4th Asian Corporate Director Recognition Awards

2013. • Ranked as the most powerful business women in India in the

Forbes list of ‘The World’s 100 most powerful women 2013.’• Received the “Transformation Leader Award” by NDTV Profit

Business Leadership Award 2012.• Featured for the third year in a row in the power list 2013 of 25

most powerful women in India by India Today.• Is the only Indian to be featured in the Dow James list of Most

Influential Female Executive in the world of the last decade• Awarded the business person of the year 2012 by Business

India. She is the first woman recipient of this award in 31 years.

2012• Topped the list of “50 Most Powerful Women in Business.” by

the fortune India.• Ranked 18th in Fortune’s List of 2012 Business Person of the year.

This is fortune’s annual ranking of 50 global leaders who are “the best in business.”

• Ranked 59th in the world’s 100 most-powerful women by Forbes.• Named amongst the nine Indian Women in the Forbes inaugural

”Asia Power Businesswomen” list.• Ranked fifth in the list of the “Most Powerful CEOs” in India by

the Economic Times and first in the list of “Top Women CEO’s” in the country.

• Conferred with CNBC Asia’s India Business Leader of the year award and CSR award.

• Named the Business Person of the Year by Business India.• Named amongst the “25 most powerful professional women” in

the country India today for the second year.

2011• Ranked fifth by Fortune in the international list of “50 Most

Powerful Women in Business.”• Ranked 17th among the “25 Most Powerful CEOs” in Asia by

Fortune.• Ranked 43rd “Most Powerful Women” in the world by Forbes.• Named among the “50 most influential people in global finance”

by Bloomberg markets magazine

• Named among the “two best Indian CEO” in an annual poll by Finance Asia.

• Ranked 10th by financial times in the “Top 50 Women in World Business”.

• Received the “Global Leadership Award” from the VS-India Business Council.

• Named “Most Powerful Women in Indian Business” by fortune India.

• The first woman to be named as the “Business Leader of the Year” by the Economic Times.

• Featured in the “Hall of Fame – Most Powerful Women in Indian Business” by business today.

• Conferred with the “Transformational Business Leader of the Year” award by all India management association.

• Conferred with “Padma Bhushan” which was given away by president in a ceremony at Rashtrapati Bhawan.

2010• Ranked 10th in the list of “Most Powerful Women in

Business” by fortune.• Ranked 92nd in the list of “Most Powerful Women” in the

world by forbes.• Conferred with the “Outstanding Woman Business Leader

of the Year "award by CNBC TV18• Conferred with the “Banker of the Year Award” by Financial

Express.• Featured in the list of “30 most powerful women leaders”

in business today for eight consecutive years from 2002 to 2010.

Emolument

Chanda kochhar is an incredible overachiever. At a very young age, she was appointed the M.D. of ICICI Bank, a gigantic power house with a market cap of 142,230 crore. Since the day, she took charge (01/05/2009), ICICI has gone places , giving its shareholders a return of 158%.

While the growth was tempered in the early years to curb MPAs, it has been on a growth trajectory in the recent past. Now, with a salary of Rs5.12 crore , Chanda kochhar has achieved the distinction of being the highest paid banker in the country.

The other top-notch bankers were not on chanda kochhar’s heels. Aditya Puri, the star M.D. of HDFC Bank came within touching distance with an annual salary of Rs 5 crore.

Shikha sharma, CEO Axis Bank took home Rs. 3.45 crore while wiz-kid uday kotak, M.D. kotak Mahindra Bank, had to remain content with a salary of Rs. 2.19 croreIn terms of shareholders return, Chanda Kochhar’s ICICI Bank came second with a 51% YOY return while Shikha Sharma’s AXIS Bank came third with a 47% YOY return. For the fourth place, Aditya Puri’s HDFC Bank was tied with a 42% YOY return.

ConclusionChanda Kochhar’s ability to manage such a huge organization and

being it the best profits ever keeping the employees highly contented is the most admiring quality about her. We have heard that a leader is tested during critical times. It shows her decision making power. In year 1991, when country was dwindling under financial pressure from all corner, it was then the concept of privatisation of bank was done.

Her abilities in the financial sector were highly appreciated in the company which got her a post of general manager in 1994. It makes this person admired all around the nation. The HR communication qualities of a leader can be seen in the manner she convinced the customers to use the services of privatised bank in the era.

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Looking at the designation changes in Kochhar’s career , it become clear that she had to manage different team at different times and also in quick succession. Being manager of so many companies alone, and patting all of them at the apex in their respective fields also shows her ability to manage parallel work functions.Finally one can admire Chanda Kochhar for the fact that she has not inherited success. She has gone through all the phases of struggle before even leading a single team. For her, many a times excelling at work meant giving up on her personal priorities. “There were so many occasions when I wasn't around for my kids or my husband. But we learnt to work around it.” said kochhar. In many ways her children have motivated too.

References

• Wikipedia.org/wiki/chanda-kochhar• www.forbes.com/profile• www.icicibank.com• www.businessnew,com• www.toi.com• www.weforum.com• Articles.economictimes.com