I ASSUMED OFFICE AT APPROPRIATE TIME: KOCHHAR

Not deterred by the economic slowdown, exit of her two top-level colleagues and confusion over foreign investment in banks newly appointed CEO and Managing Director of ICICI Bank Chanda Kochhar says she has assumed office at an ?appropriate time? and would take forward the legacy of predecessors K V Kamath and N Vaghul.

PTI: Mr Kamath had a big image and to succeed Mr Kamath anybody would require tremendous efforts. Now add to that two issues have come up. One, whether your bank is Indian bank or foreign bank and second is exit of two of your top-level executives. So do you think you have assumed office at appropriate time? Kochhar: Of course, I think I have assumed office at appropriate time because according to me one as far as foreign ownership you are talking about really there is no change as such. Our ownership has not changed. Some guidelines have come but they are in general the guidelines just now. So my feeling is that there could be some clarification that could come for banking sector. PTI: Have you taken up the FDI issue with government or Reserve Bank of India?

Kochhar: My understanding is that they (government) would be looking at it themselves and it is not an issue of one bank and it is something which is relevant for all the private banks. We understand that some discussions are going on between government and the RBI. In any case it doesn?t change day-to-day life at all. We are just waiting.

PTI: In case clarification does not come to your expectation. Could it change basic structure of the bank?

Kochhar: I don?t think so. I think since they are looking at it we should wait for the clarification.

PTI: So you don?t see anything otherwise? Kochhar: I don?t forsee otherwise. In any case it is hampering our day-to-day working. So need for any contingency plan. PTI: Other thing is that two of your topmost colleagues have quit. All of you have grown together in this outfit in this bank. How do you feel?

Kochhar: Again may be this is being overreacted upon. Renuka had planned to set up private equity fund for quite some time. I think it was quite some time that she had plans. At least that is how she indicated her plans. It is just that by the time her plans were finalised and everything became co-incidental to this. The other thing is that we have such a large talent pool. I don?t even expect any disruption to be caused in our working at all. I think we are the one of the rarest organisations where there is vast talent pool.

The DNA of all of them is the same the ICICI culture. Second thing is versatile talent pool if you look at all the people including myself all my director colleagues they have moved across at least one or two major functions.

They have ability to quickly grasp and understand a different kind of business and move on. Actually, this has been philosophy of ICICI Bank also move the person around once the person has spent a lot of time in one business so that the person is able to kind of developed his skill.

I have myself moved to corporate, to retail to bank to infrastructure finance and every time it added to my personality. We have people who have very quickly taken on to new jobs. PTI: Do we see emergence of new lieutenant for Ms Chanda Kochhar in the changed scenario?

Kochhar: I will call it a talent pool I am proud of my team actually. The fact that they have taken on the new job quickly and effectively.

PTI: Do you miss Mr Kamath as he has taken the backseat? Kochhar: I would say that the new generation has to become confident and the new generation has to learn to taken on responsibilities.

PTI: You and Mr Kamath made very strong formidable team. Do you now miss Kamath who is now not in day-to-day banking activity?

Kochhar: I would say that one he is still the non-executive Chairman. So, in that sense his broad guidance is still going to be available as Mr Vaghul?s guidance was available for Mr Kamath for these many years.

Yes, he is clearly not going to be involved in the day-to-day activities. I think what is important for us to say that he has created a very good legacy a great legacy both Mr Vaghul and Mr Kamath in their respective roles. It?s really my responsibility to make sure that the legacy not just survives but thrives and grow. PTI: When you hang your boots where would you want to see ICICI Bank?

Kochhar: I have not really thought of the day when I will hang my boots because I think I am just starting. What I am thinking right now is all that I have to do.

PTI: What are your top three priorities?

Kochhar: Three top priorities are changing our deposit mix. Second is the monitor credit quality and the third is to keep the organisation ready for growth for the next phase of growth. PTI: Will you elaborate on the first priority what is CASA level and where do you want to reach?

Kochhar: We have reached 28.7 per cent as on March but I want to reach at least to 32-33 per cent because that is really going to change the deposit structure.

PTI: By when would you like to reach that level? Kochhar: Well the target is to get it in year?s time....in the current fiscal.

PTI: What would be your level of long term deposit and retail deposits?

Kochhar: Retail deposits would exceed 50 per cent currently the bulk deposits exceed 50 per cent for us. I want to change the ratio and make retail deposits to be more than 50 per cent for us. PTI: Would such a change would help in lowering lending rates? Kochhar: It?s actually if you see our track record our lending rates have always been very competitive. I think you are trying to compare currently lending rates of some specific products of some banks, I think every time there are some products which market does not compete.

If you look at in general, what are the new mortgage loan being given by many other Housing Finance Companies and many other private sector banks. These rates have been the same and our rates are at par.

If we have not been competitive we would not have been growing. Some products you consciously decided not to compete. It does not make viable sense.

PTI: So what are the areas you would not like to compete with the public sector bank?

Kochhar: No it?s not areas. We will compete in all areas but there could be some products where at certain interest rate it may not make economic sense.

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