India
Kochhar was facing a probe for allegedly favouring family members in lieu of providing loans to a corporate house
New Delhi: Chanda Kochhar, ICICI Bank CEO and MD, has resigned with immediate effect after the board of directors accepted her request to seek an early retirement.
Sources said Sandeep Bakshi has been appointed as the new MD and CEO with effect from October 3.
In a communication to Bombay Stock Exchange, the ICICI Bank 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.
It added that: “Ms Kochhar will also relinquish office from the Board of Directors of the Bank’s subsidiaries The Board decided to appoint Mr Sandeep Bakhshi as Managing Director & Chief Executive Officer. His appointment will be for a period of five years until October 3, 2023, subject to regulatory and other approvals.
Kochhar was facing a probe for allegedly favouring family members in lieu of providing loans to a corporate house. The Central Bureau of Investigation (CBI) had initiated a preliminary investigation into the Rs 3,250 crore ICICI loan extended to Videocon in 2012, and the possible role of Kochhar's husband in March. Securities and Exchange Board of India had issued a showcause notice.
While responding to the showcause notice by SEBI, Kochhar had reportedly said that she was unaware of the business dealings between her husband, Deepak Kochhar, the promoter of NuPower Renewables, and Videocon group promoter Venugopal Dhoot.
In June, the regulator favoured adjudication proceedings against ICICI Bank and its CEO for alleged violation of listing disclosure norms regarding 'conflict of interest' in business dealings of her husband with the Videocon group.
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