Banker Chanda Kochhar, embroiled in a case of conflict of interest, has stepped down as ICICI Bank's managing director and chief executive officer. Sandeep Bakhshi will replace Kochhar as the MD and CEO of ICICI Bank for the next five years, the board stated on Thursday.
"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 on Thursday. Sandeep Bakhshi was the chief operating officer of ICICI Bank and had been handling all the businesses since June 18.
The decision was taken after the ICICI Bank board accepted Kochhar's request for early retirement. However, it has been informed that the inquiry instituted by the ICICI board against Kochhar will remain unaffected by her decision to leave the company.
Chanda Kochhar was sent on forced leave from June for the completion of an independent probe into charges of conflict of interest and personal gains from loans ICICI Bank gave to Videocon Group in 2012. NuPower Renewables, set up by Kochhar’s husband Deepak Kochhar, has also been alleged to have benefitted from the move.
The allegations, put forth by investor Arvind Gupta, have dented Kochhar's image. Last month, markets regulator SEBI had hinted that they might summon Kochhar and her husband.
At the same time, ICICI Bank and Kochhar have been maintaining there has been no regulatory violation on their part and that she was not aware of specific business dealings of her husband.
Meanwhile, the markets seem to have welcomed Kochhar's decision to quit the bank. Shares of ICICI Bank surged nearly six per cent on Thursday, even as the markets were reeling under rise in crude oil prices. Following the announcement, the stock soared 5.69 per cent to Rs 320.90 on the BSE.
On the NSE, shares of the company jumped 5.77 per cent to Rs 321.25.
