Chanda Kochhar quits as MD & CEO of ICICI Bank

The board of directors of private lender ICICI BankNSE 3.44 % on Thursday accepted Chanda Kochhar’s request to seek early retirement from the post of MD and CEO.

In a filing to BSE, the bank said its board has accepted the request with immediate effect.

Following the development, the stock rose 5.23 per cent to hit a high of Rs 319.50 on BSE.

The bank said that the enquiry instituted by the board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry.

Kochhar will also relinquish office from the board of directors of the bank’s subsidiaries.

The board has decided to appoint Sandeep Bakhshi as Managing Director & Chief Executive Officer for a period of five years.

His appointment will be for a period of five years until October 3, 2023, subject to regulatory and other approvals. The other terms and conditions of his appointment, such as remuneration, would remain unchanged.

ICICI Bank had recently told exchanges that it has replied to its show cause notice with respect to a probe into alleged regulatory lapses involving the CEO, her husband and his business dealings.

Separately, the bank on Thursday said, due to health reasons, M D Mallya, Independent Director, resigned from the board and the same was accepted.

The bank last month convened its 24th annual general meeting (AGM), where shareholders of the bank questioned veracity of allegations of quid pro quo by the CEO and her family members and conflict of interest with respect to a loan extended to certain entities, including the Videocon group.

Kochhar, who was on leave till the completion of an external enquiry into an alleged conflict of interest, was not present at the AGM.

The Sebi issued had earlier issued show cause notices to ICICI Bank, Kochhar and others after its preliminary examination favoured initiating adjudication proceedings against them for alleged violation of listing disclosure norms regarding ‘conflict of interest’ in business dealings of her husband with Videocon Group

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