Chanda Kochhar quits ICICI : Impact of Controversies

Chanda Kocchar, the chief executive officer of ICICI Bank, has resigned on October 4, 2018. Followed by the resignation of the chief officer, the stock rose 4.21%. Kocchar requested to take early retirement. The plea is effective immediately. Chanda Kocchar, 56 who was head of the private bank ICICI since May 2009 has stepped down from her post of the chief executive officer. She further stepped down from the board of directors including ICICI securities.

Her current tenure was to end on March 31, 2019. But due to her request to early retirement, she stepped down on October 4, 2018. Her tenure was for five years. The bank further clarified that her post-retirement benefits would be subject to the inquiry outcome. It further explained that all the proceedings on her inquiry would be unaffected by her resignation.

Replacement of Chanda Kocchar

Sandeep Bakhshi headed ICICI Prudential Life Insurance in 2010 and took the company public in 2016. He is playing the role of Managing Director and Chief Executive Officer following Kochar’s resignation. His appointment is also for five years like the previous CEO Chanda Kocchar. His appointment will be till October 3, 2023, and subject to various regulations and approvals.

Sandeep Bakhshi previously took the helm in June while Kocchar was sent on leaver where she was pending an inquiry. Chanda Kocchar was previously forced on a temporary leave till the completion of an independent investigation on the charges of conflict of interest against her. As her husband was a beneficiary of loans from the borrowers of the bank.

Allegations against Kocchar

The Central Bureau of Investigation (CBI) is discerning the allegations that Chanda Kocchar‘s husband Deepak Kocchar, has received an investment from a Videocon group. It was received as a quid pro quo for a loan from the bank to NuPower Renewables. The company is owned by Deepak Kocchar.

After a long tenure of 34 years, Chanda Kocchar resigns as the Cheif Executive Officer. The inquiry set is a 3,250 crore loan grant to the Videocon group in the year 2012. A whistleblower in March stated that Kocchar’s husband and her family benefitted from the loan. Videocon has an investment in NuPower Renewables.

Starting from the scratch

Chanda Kocchar has joined the bank in the year 1984 as a management trainee. Kocchar has handled project appraisals during her initial years at the bank. She simultaneously monitored and evaluated projects in textile, paper and cement industries. She was further a part of the core team that setup ICICI Bank. Promoted to assistant general manager in the year 1994, she became a deputy general manager in the year 1996. In the year 1998, she gets a  promotion as the general manager. Her tasks include handling the top 200 clients of the bank and oversaw the e-commerce wing.

ICICI Bank earlier expressed full faith in Mrs. Kocchar. But in May, the board decided to set a comprehensive inquiry to foment the charges against her. As more charges come up, a multi-agency probe is on cards.

Komal Sinha: