Speaking to CNBC Asia, Kochhar said she continued to communicate and instill confidence among her employees in dealing with customers who panicked and made a dash to the bank branches to withdraw their holdings.
Also read: India's economy is out of the woods: ICICI CEO
" One of the option was to keep the branch open even till 2 am in the morning and ask the customers to come in, serve them water and tell them atht nothing is wrong with the bank. After that, if they still wanted to withdraw money, they could," she adds.
Below is the edited transcript of Kochhar's interview.
Q: ICICI Bank didn't escape the global financial crisis when Lehman collapsed in September 2008. A lot of people were afraid that bank was going to go under. Suddenly thousands of people were lining up in front of your branches and ATMs to withdraw cash. As a CEO how did you go about instilling calm amidst all the chaos, amidst all the panic?
A: That was a crisis of perception and not so much of reality. We did have exposure to Lehman Brothers and that is what created anxiety amongst people but that exposure was not even one percent of our balance sheet. The first important requirement of me as a leader was to clear that perception.
Q: How did you go about doing it?
A: It was very difficult at that time but the most important part was to keep communicating.
Second was to take on the ground action to ensure that the operations don't get destabilised. If there are thousands of people waiting in the branch wanting to withdraw cash, get into the details of looking at the logistics and saying is cash available in branches. If they want to withdraw, there should be no shortage of cash.
The last one was to instill confidence amongst the employees, especially the people at the branch. I was talking to the branch managers directly and telling them to show their confidence and patience towards the customers.
Q: How did you do that?
A: We had two options, one is that at 5 pm just put the shutters down and say sorry the branch is closed you can keep standing outside but we will see you tomorrow or the other option was to keep the branch open even till 2 am in the morning and tell the customers come in, we will give you water and tea but we will tell you nothing is wrong with us. After that if you still want to withdraw money you can withdraw money.
ICICI Bank stock price
On January 10, 2014, ICICI Bank closed at Rs 1024.55, down Rs 26.95, or 2.56 percent. The 52-week high of the share was Rs 1236.90 and the 52-week low was Rs 758.80.
The company's trailing 12-month (TTM) EPS was at Rs 79.51 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 12.89. The latest book value of the company is Rs 577.67 per share. At current value, the price-to-book value of the company is 1.77.
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