Corruption Deep Rot in ICICI Bank : Ramifications for Stock

The Chanda Kochhar case is yet to be proven by the Central Bureau of Investigation (CBI) and a chargesheet does not in any way prove guilt. But the facts do appear to be very damning. If for nothing else, it shows that Kochhar's husband got a quid pro quo from the Videocon Group's Venugopal Dhoot for approving a bank loan.

This case just highlights that corruption and a lack of personal ethics as well as a lack of understanding of the concept of conflict of interest are not limited to the government and public sector entities alone. Corruption continues to be a problem across Indian society and continues to spread. And it must be tackled, if India is to truly rise up any ease-of-doing business rankings.

Implications for the Stock

The news is already factored in the price and it has a strong support at 363 level which if broken on lower side means that stock can fall to 350,311 levels. However it is better to be away from such stocks which have tarnished management which has brought disgrace to their parent organisation and if banking is your forte and you want to enter than consider entering HDFC bank or Kotak Bank which have much better assets and management.

Do remember to check hot stock of the day and make money like professionals.