Money & Banking

Kochhar quits ICICI Bank, but enquiry will continue

Our Bureau Mumbai | Updated on October 04, 2018 Published on October 04, 2018

Chanda Kochhar   -  REUTERS

Stock rises even as market crashes; Sandeep Bakhshi named MD &CEO

ICICI Bank MD and CEO Chanda Kochhar, who has been in the midst of allegations of corporate misconduct and quid pro quo in certain loans, has opted for early retirement. The board of directors of the private sector lender has accepted her resignation and appointed Chief Operating Officer Sandeep Bakhshi in her place.

Despite the larger market tanking, the ICICI Bank stock surged 5.7 per cent to ₹320.90 on the BSE immediately after the news, before closing at ₹315.95, up 4 per cent over the previous day's close

 

“The board of directors of ICICI Bank, accepted the request of Chanda Kochhar to seek early retirement from the bank at the earliest. The board accepted this request with immediate effect,” ICICI Bank said in a regulatory filing on Thursday, after a board meeting. The board also decided to appoint Bakhshi as Managing Director and CEO. His appointment will be for five years, until October 3, 2023, subject to regulatory and other approvals.

Kochhar will also relinquish office from the board of directors of the bank’s subsidiaries, it said. “The enquiry instituted by the board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry,” it said.

Separately, due to health reasons, MD Mallya, Independent Director, resigned from the Board and the same was accepted.

Kochhar, 56 was to retire on March 31, 2019 when her five-year term came to an end.She has been surrounded by allegations of quid pro quo in loans sanctioned by ICICI Bank to the Videocon Group and the Essar Group in return for funds given to her husband Deepak Kochhar’s firm NuPower Renewables.

 

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Published on October 04, 2018
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