Facing enquiry over charges of conflict of interest, ICICI Bank director and CEO Chanda Kochhar on Thursday quited the bank.
India’s third largest loaner by assets, ICICI Bank Ltd, has appointed Sandeep Bakhshi as chief of bank for a term of 5 years, who will replace Chanda Kochhar, who wanted early retirement, the bank’s statement said on Thursday.
The former head of the bank’s life insurance arm, Bakhshi took the helm on interim basis in June this year, when Kochhar went on leave for thorough inquiry into associate alleged conflict of interest that triggered months of controversy. “The enquiry instituted by the board can stay unaffected by this and certain benefits will subject to outcome,” the bank said in a statement after a board meeting.
Kochhar, 56, who had headed ICICI Bank since 2009, is additionally stepping down from the board of administrators of its units, the bank added. Bakhshi may lead ICICI for 5 years, his extension is subject to restrictive approval, whereas alternative conditions of his appointment stay unchanged, the bank statement asserted.
ICICI shares rose the maximum amount as 5.8 per cent after the news broke. In June, a panel was started inquiry, headed by retired Supreme Court Justice Srikrishna, to probe allegations against Kochhar.
Here is what ICICI Bank said during a communication to BSE: “The Board of administrators of ICICI Bank accepted the request of Ms Chanda Kochhar to take early retirement from the Bank. The Board accepted the request with immediate effect. The enquiry instituted by the Board can stay unaffected by this and sure edges are going to be subject to the result of the enquiry.
Kochhar will relinquish workplace from the Board of administrators of the Bank’s subsidiaries; the Board now is set to appoint man. Sandeep Bakhshi’s appointment as director of the bank is going to be for a tenure of 5 years till October 4,2018 to 2023, his extensions as director is subject to approvals after completion of full term.”