Sandeep Bakhshi is new MD & CEO of ICICI Bank, Chanda Kochhar quits
04 October 2018
ICICI Bank Ltd today announced the appointment of Sandeep Bakhshi as managing director and chief executive officer to replace Chanda Kochhar, who has requested early retirement from the bank.
ICICI Bank also said Chanda Kochhar, who has been facing an external enquiry against her in the Videocon loan matter, sought an early exit from the position.
"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," the bank said.
Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to the Videocon group.
Bakshi's appointment will be for a period of five years until 3 October 2023, ICICI said in a BSE filing.
Kochhar had gone on leave till the completion of the enquiry as announced on 30 May 2018. The bank had announced an independent enquiry into the allegations against Kochhar following a complaint from a whistle-blower.
Kochhar will also relinquish office from the Board of Directors of the bank’s units, it said in a statement.
Preliminary investigations by the Securities and Exchange Board of India's (Sebi) found that Chanda Kochhar’s husband Deepak Kochhar has had many business dealings with Videocon Group over the last several years. Deepak Kochhar and Videocon chief Venugopal Dhoot were co-founders and promoters of NuPower Renewables, besides other associations.
On 18 September, Sebi said the private sector lender expressed "intent informally" for consent plea to settle allegations against Chanda Kochhar related to lapses in corporate governance in the Videocon case.
Sebi had earlier issued show-cause notice to ICICI Bank, Chanda Kochhar and others after a preliminary probe showed alleged violations of listing disclosure norms. The preliminary probe found Kochhar’s husband having several business dealings with Videocon Group for many years. ICICI Bank has replied to the show-cause notice.
Kochhar is believed to have maintained that she had no information about her husband’s business dealings; the bank has given similar replies.
ICICI Bank is being probed for a number of serious allegations, including disclosure lapses regarding business dealings of Deepak Kochhar and his brother Rajiv Kochhar, who are suspected to be directly or indirectly linked to the bank or its big borrowers.