Motu was hunched over the daily newspaper when Chotu walked into the room.

Kya haal hai , Motabhai? You seem to be reading something seriously for a change, food review?

This is food for thought, Chotu.

Wow, big words, but what’s the thought Motu?

I’m inspired by this news of ICICI Bank initiating an internal probe against its CEO. Hasn’t it set high standards of corporate governance?

Are you serious, Motu? Initiating a probe after brazening it out for more than two months is not the best example of corporate governance.

Chotu, you’re most uncharitable and unkind. Here is a company that is willing to probe its own CEO on the basis of mere allegations which may not even have an iota of truth in them and you’re not willing to acknowledge it.

Motabhai, I think you badly need to have your morning dose of lassi and jalebi . Your mind does not seem to be working.

What do you mean? ICICI Bank has set an example by deciding to probe its own CEO.

That’s the problem, Motabhai, the general standards of corporate governance are so low in this country that a bank which sits tight through a raging controversy and finally wilts under pressure of a whistle-blower letter is praised for upholding corporate governance.

Considering that you consider yourself so smart, why don’t you then tell me what ICICI Bank should ideally have done?

Now you’re talking business, Motu. Here, first take a few gulps of this lassi , that will set your mind working. Here’s the deal. ICICI Bank is the second largest private sector bank in India...

Hang on Chotu, you’re wrong. I know for a fact that it is the largest private sector bank and the second largest bank behind SBI.

Motabhai, you seem to have done some homework and I’m impressed. But, as usual, you’re not fully updated. HDFC Bank has upstaged ICICI Bank in the last few quarters and is now the second largest bank in India and the largest private sector bank.

Ok Chotu, since you’re a BusinessLine reader, I’ll not dispute your knowledge...

ICICI Bank has built a tremendous franchise in its business. The allegations against its CEO, though unproven, are serious. Mind you, the investigative agencies have taken cognisance of the allegations and are also probing her relatives.

So?

The stock has taken a hit in the market and major investors are worried. Remember, trust is everything in the banking business. But yet, the CEO and the bank have been unmoved. It may be that the CEO is squeaky clean and these allegations are mere mudslinging. But how’re we to know what’s the truth? Perception is everything in public life and that is something not favourable to the CEO now.

True, but what more can she do? Her board has reposed its faith in her and her Chairman came out swinging in her support just a month ago....

That’s all fine. In an ideal world the CEO should have stepped down until the allegations were proven wrong. Remember, these are not casual accusations flung at her and she’s setting an example for her colleagues. The highest standards of corporate governance would have demanded that she give the internal probe a free hand by making way for an interim CEO. She could always return once her name is cleared.

But why should she step down when she knows she did no wrong?

Simply because you should not only be clean but also seen to be clean. Remember the agnipareeksha in the Ramayana ?

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