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Kochi , Sept. 28

RECOGNISING the role that Federal Bank has played in the economic development of Kerala, the Chief Minister, Mr Oommen Chandy, has come out in support of the bank.

In a letter to the Union Finance Minister, Mr P. Chidambaram, the Chief Minister said that ICICI Bank, which has come to acquire 20 per cent equity in Federal bank, was now trying to get total control of the management of the Kerala-based bank.

ICICI Bank, he said, was trying to achieve this by having their own personnel elected as Directors at the annual general meeting.

He pointed out that ICICI Bank already has an official nominee on the board and there is no objection to the continuance of such a nominee. But, by using their voting rights, ICICI Bank was trying to have their sympathisers, in place of other outgoing Director Board members. Any financial institution, just because of holding a large number of shares in another concern should not use their voting power to take control of the management or to destabilise the current pattern of management, Mr Chandy said.

He requested the Finance Minister to intervene in this matter and direct ICICI Bank not to use their shareholding and voting power to take control of Federal Bank.

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