Indian Women in Banking Industry Breaking Glass Ceilings Case

Ref. No.: HRM0061 Indian Women in Banking Industry: Breaking the Glass Ceiling? As an Indian, one would not have missed out on these known names at all and some of these names would be familiar internationally as well. Chanda Kochhar, CEO and MD of ICICI Bank, Neelam Dhawan, MD, Hewlett-Packard, India, Shobhana Bhartia, chairperson and editorial director of HT Media, Preetha Reddy, MD, Apollo Hospitals, Kiran Mazumdar Shaw, chairperson, Biocon, Naina Lal Kidwai, country head, HSBC, Indra Nooyi, CEO, PepsiCo, Radhika Roy, MD, NDTV, Chitra Ramakrishna, Deputy MD, NSE, Aruna Sundararajan, CEO, Common Services Centers Programme, IL&FS Ltd, Aishwarya Rai, Kalpana Chawla, Arundhati Roy, Sonia Gandhi, Gurinder Chadha and many more – who have carved a niche for themselves, proving their mettle in various fields. These names and several others signify, that they can deliver and no longer they be desisted proving the words said by Margaret Thatcher (First Woman Prime Minister of UK) years ago that, ‘If you want something said, ask a man. If you want something done, ask a woman.’1 According to a survey by international executive research firm, EMA Partners International, around 11% of Indian companies have women CEOs, while in the case of Fortune 500 list from the US, the women CEOs just account for 3% of the total consideration set.2 Interestingly enough, year 2009 seemed to be a silver lining year for India Inc., especially the banking and financial services sector with thirteen women heading (Annexure I) either banks or insurance companies and many others heading other companies from varied industries. This is quite an unparalleled phenomenon for any emerging economy. Especially when this fact is interspersed with the timing of the global meltdown and the way India has performed during and post US financial crisis, with these exemplary women anchoring the Indian financial market, there must be a hidden cue to their suppressed abilities. What does this mean for India Inc.? Does it mean that women 1 “Corporates need to hire more women”, http://www.hinduonnet.com/jobs/0611/2006112200481000.htm, November 22th 2006 2 “Women CEOs: India Inc beats US hands down”, http://www.ndtv.com/news/business/ women_ceos_india_inc_beats_us_hands_down.php, December 13th 2009 This case study was written by Sowjanya Mora and Saradhi Kumar Gonela under the guidance of Dr. Nagendra V. Chowdary, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. © 2009, IBSCDC. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Inspection Copy Indian Women in Banking Industry: Breaking the Glass Ceiling? corporate power has arrived? What does this mean for the banking and financial services sector? Does it mean that women make better bankers with their innate qualities? The adulation aside, the journey to these C-suites, for many of these women executives was quite an ordeal. Gradual opening up of a conservative society to a modern society preceded breaking the glass ceiling. Of course, these women executives are still traditional Indians doing the business with a global outlook which sets them apart. However, what everyone questions is would that pie grow or would it shrink or would it just stay put? Women in Indian Society: From Custodians of Conservatism to Corporate Catalysts “Yatra naryastu pujyante ramante tatra Devata, yatraitaastu na pujyante sarvaastatrafalaah kriyaah” is an often-quoted Manu’s saying. Manusmriti (3.56) – which translated reads, ‘wherever women are given their due respect, even the deities like to reside there and where they are not respected, all actions remain unfruitful’. Since ancient times, women have an esteemed position in the Indian society. In fact, in Hindu religion, women are both feared and worshipped as goddesses. Ironically, women were ill- treated and were low-graded. As in many other cultures, even in India, women were expected to manage household chores and virtually devote all their time, energy and dedication towards their families. For decades, women have been playing multiple roles in their life. Be it a daughter, helping her mother in house-hold chores or a sister, taking a role of mentor to the younger siblings or a wife, supporting her husband and managing household budget. Historically, the girl child in the Indian family was never given equal importance to that of boy child and was considered to be an economic liability because of the dowry tradition (bride’s parents have to provide offerings in the form of cash or kind to groom). India was a country with some traditions like sati (the immolation of a widow on her husband’s funeral pyre), early marriages/child marriages. Also, people did not bother about widows and widow re-marriages, etc which have left a deep mark on women’s development in India. Moreover, there was abysmal scope for formal or higher education for women. Even if given the opportunity of higher studies, they were always denied the freedom of place to work and the kind of profession to pursue. They accounted for a small proportion of the formal Indian labour force and were supposed to be modest in all actions, which hindered their ability to exhibit skills on an equal basis with men. The Indian Constitution states that women are legal citizens of the country and have equal rights with men. “According to the Article 14 of Indian Constitution, The government shall not deny to any person equality before law or the equal protection of the laws. Article 15 declares that government shall not discriminate against any citizen on the ground of sex. Article 15 (3) makes a special provision enabling the State to make affirmative discriminations in favour of women. Moreover, the government can pass special laws in favour of women. Article 16 guarantees that no citizen shall be discriminated against in matters of public employment on the grounds of sex. Article 42 directs the State to make provision for ensuring just and humane conditions of work and maternity relief. Above all, the Constitution imposes a fundamental duty on every citizen through Article 15 (A) (e) to renounce the 2 Inspection Copy Indian Women in Banking Industry: Breaking the Glass Ceiling? practices derogatory to the dignity of women. Article 39 (a) and (d) declares that the citizens, men and women equally, have the right to an adequate means of livelihood and also there is equal pay for equal work for both men and women.”3 Though many women empowerment activities and reforms granting equal rights to women were introduced, there was no impact or change in the attitude of people. The socio-cultural restrictions were the primary obstacles in women development, which created gender discrimination in the country. However, because of some factors – like death of the bread winner, sudden fall in family income or inadequate family income – women took part in informal employment (small trader, artisan or field labourer on a family farm). But yet, that did not result in women empowerment. India Inc.: The Changing Gender Composition With the process of globalisation in 1990s, which focused on the development of Indian society, the status of women has undergone a remarkable shift. Thereafter, issues related to women education, empowerment and employment received greater attention in the planning circle and aimed to eradicate discriminations. Initiation of economic reforms in India in early 1990s markedly transformed the patterns of employment of Indian women and brought real renaissance in the status of women. “In India, globalisation has provided opportunities for educated, middle class women to build their own dreams and excel in fields, which were hitherto perceived as male domains,”4 expressed Pallavi Bhakru, partner and director, International Business at Grant Thornton5. Gradually, women participation in formal labour force increased from 22.3% in 1990–1991 to 31.6% in 2000–2001.6 Factors like changing management policies, technological changes and social changes with regard to women’s education and employment contributed to the growth of women employment. Globalisation and growing emphasis on education have helped to raise the status of women. According to industry analysts, “Female enrollment in higher education has merely trebled in the past three decades, the number of women studying commerce and business has gone up ten times since the mid-1980s.”7 According to the Catalyst, the percentage of enrolled female tertiary students in 2005 was approximately 40%.8 “Education and exposure have led to greater societal acceptance of women participating in various walks of life, including business,”9 expressed Pradeep Mukerjee, founder-director of Confluence Coaching & Consulting (CC&C). Changes in the Indian culture favouring higher education for women helped the cause of women employment tremendously. The growing Indian middle-class shed apprehensions about educating the girl child and gave due 3 “The Constitution of Indian”, http://lawmin.nic.in/coi/coiason29july08.pdf 4 “More Indian women in senior management: Survey”, http://www.thehindubusinessline.com/2007/03/28/stories/ 2007032802251000.htm, March 8th 2007 5 Grant Thornton International surveys privately held businesses around the world each year on a range of timely and relevant issues. The data is organised into a number of

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