ICICI Bank: Chanda Kochhar finally goes, Sandeep Bakhshi to head bank

Chanda Kochhar, who helmed the country’s second-largest private lender ICICI Bank for nine years since 2009, on Thursday stepped down as managing director (MD) and chief executive officer (CEO) amid allegations of irregularities in loans given to the Videocon Group. Shares of ICICI Bank ended 4.07% higher than their previous close on the BSE at Rs 315.95.

Kochhar will be succeeded by Sandeep Bakhshi, who has been holding the position of the bank’s chief operating officer (COO) since June 2018. His appointment will be for a period of five years up to October 3, 2023, subject to regulatory and other approvals. The other terms and conditions of his appointment, such as remuneration, would remain unchanged.

Kochhar will also relinquish office from the boards of the bank’s subsidiaries. Separately, MD Mallya, independent director on ICICI Bank’s board, resigned from the board due to health reasons .

In a statement to the exchanges, the lender said, “The board of directors of ICICI Bank Limited accepted the request of Ms Chanda Kochhar to seek early retirement from the bank at the earliest. The board accepted this request with immediate effect. The enquiry instituted by the board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry.”

Former Supreme Court judge B Srikrishna has been appointed to conduct an investigation into charges of conflict of interest and quid pro quo against Kochhar with respect to a loan given to the Venugopal Dhoot-owned Videocon Group.

In 2012, ICICI Bank had extended a loan of Rs 3,250 crore to the Videocon Group. After the loan was granted, NuPower Renewables, which is run by Kochhar’s husband Deepak Kochhar, received Rs 64 crore from Videocon’s promoter through a series of investment vehicles, allegedly as quid pro quo.

Charges of conflict of interest with respect to the loan to Videocon have also been raised in multiple whistleblower statements. After repeatedly coming out in support of Kochhar in March and April this year, the board of ICICI Bank had decided to send her on leave in June, pending the investigation by the Srikrishna committee.

ICICI Bank