Renowned banker and Padma Bhushan recipient Narayanan Vaghul, architect of ICICI Bank, dies at 88

Narayanan Vaghul, the banker who build ICICI, died on May 18 at the age of 88 in Chennai.

He was on the ventilator for the last two days at Apollo Hospital in Chennai, in critical condition. He was admitted to hospital after he fell and was unconscious, The Economic Times reported quoting his family.

A career banker who started his journey with the State Bank of India, became the youngest chairman of a state-run lender – Bank of India – at 44. He was asked to head ICICI Bank during the Rajiv Gandhi administration.

Vaghul is also a recipient of Padma Bhushan in 2010, in the Trade and Industry category. In 2023, Narayanan Vaghul had released his memoir, called ‘Reflections’ which carried a vivid account of his experiences spanning several decades in India’s financial sector. 

A teacher and public sector banker, Vaghul took the reins of the then Industrial Credit and Investment Corporation of India (ICICI), now ICICI Bank, as its MD & CEO in the mid-80s. He played a key role in scaling up the developmental financial institution. 

The development finance institution then was turned into ICICI Bank, under his stewardship.

After stepping down as MD & CEO in 1996, Vaghul presided over the board as non-executive chairman until 2009. In fact, he groomed K V Kamath as the next CEO and also guided the bank till 2009. That was when Kamath relinquished his executive position and became chairman.

Vaghul encouraged a gender-neutral meritocracy at ICICI Bank, which saw the emergence of many women leaders in the senior management team. Kalpana Morparia, who was joint MD at ICICI Bank, went on to become the chairperson of JP Morgan South and Southeast Asia. Lalita Gupte, who retired from ICICI Bank as a Joint Managing Director, found a seat on the global boards of Nokia and Alstom. Shikha Sharma , who headed the bank's life insurance subsidiary, became the MD& CEO of Axis Bank. Similarly, Renuka Ramnath, who served at ICICI Ventures, is now the founder, MD, and CEO of private equity firm Multiples Alternate Asset Management.

Vaghul's demise was mourned personalities across spectrum, who hailed the contribution of the 'Titan of Indian Finance'.

Sharing photos from the launch of Vaghul's memoir in 2023 on X (formally Twitter), Union Finance Minister Nirmala Sitharaman wrote, "Shri N. Vaghul, an eminent banker, team builder, mentor for many in the financial world and an exemplary leader of the banking sector is no more. Condolences to his family and friends."

"Today, I grieve for the Bhishma Pitamah of Indian Banking — Mr. N.Vaghul, who passed away this morning. I grieve not just for a Titan of Indian Business, but for one of the most inspiring & generous people I have ever had the good fortune to encounter.." Anand Mahindra, Chairman of Mahindra Group wrote on X.

Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, remembered her greatest mentor in a post on X.

"Very sad to hear about the demise of Shri N.Vaghul.A visionary.Made huge contribution to India’s financial sector," wrote Shaktikanta Das, RBI Governor. 

"My deepest condolences on the passing of Narayanan Vaghul, former Chairman of ICICI. He was a friend & an institution whose legacy will endure. My thoughts are with his family & loved ones during this difficult time," wrote Milind Deora, Shiv Sena MP.