ICICI Bank CEO Chanda Kochhar quits with immediate effect after Videocon saga takes toll

The Videocon loan saga finally took the ultimate toll on ICICI Bank MD & CEO Chanda Kochhar with the company veteran for 34 years announcing her decision to leave the bank with immediate effect. The board of ICICI Bank — India’s largest private sector bank by assets — said it has accepted Chanda Kochhar’s request for early retirement.

The Videocon loan saga finally took the ultimate toll on ICICI Bank MD & CEO Chanda Kochhar with the company veteran for 34 years announcing her decision to leave the bank with immediate effect. The board of ICICI Bank — India’s largest private sector bank by assets — said it has accepted Chanda Kochhar’s request for early retirement. “The enquiry instituted by the Board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry. Ms Kochhar will also relinquish office from the Board of Directors of the Bank’s subsidiaries,” ICICI Bank said in a filing with the stock exchanges. 

Subsequently, ICICI Bank has appointed Sandeep Bakhshi as MD and CEO for five years, with effect from October 3. Further, the other terms and conditions of his appointment, such as his remuneration will remain unchaged, the bank said. Chanda Kochhar was on leave since June, pending an enquiry into alleged conflict of interest in giving a loan to Venugopal Dhoot’s Videocon Industries, with which her husband Deepak Kochhar had business dealings. In the abscence of Chanda Kochhar, COO Sandeep Bakhshi  had been appointed as acting CEO.

Taking stock of the development, N Vaghul, former CMD of ICIC Bank told CNBC TV18 that he was happy with the Board’s decision to accept Chanda Kochhar’s resignation. According to the veteran banker, the impasse ends with Kochhar’s resignation, ending uncertainty. Further, Vaghul expressed confidence in the abitilities of Sandeep Bakhshi, and said that Bakhshi will take ICICI Bank to new heights.

“I’m sure the bank would have consulted RBI before this announcement, and hence, the Reserve Bank will not have any objection. In any case, Chanda Kochhar should have retired by March,” N Vaghul told the channel. Meanwhile, ICICI Bank shares gained more than 6% to hit an intra-day high of Rs 318. 

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