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finance | IST

Chanda Kochhar quits ICICI Bank; Sandeep Bakhshi appointed as new MD and CEO

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Kochhar resigned on Thursday with immediate effect after the board accepted her request seeking an early retirement. Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to the Videocon group.

Chanda Kochhar, ICICI Bank CEO and MD, resigned with immediate effect on Thursday after the board accepted her request to seek an early retirement.
Kochhar has also quit from the Board of Directors of the bank's subsidiaries.
Sandeep Bakhshi has been appointed as the new managing director and chief executive officer with effect from October 3. His appointment will be for a period of five years until October 3, 2023, subject to various approvals.
"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's statement said.
Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to the Videocon group.
According to Securities and Exchange Board of India's (Sebi) preliminary investigations, Chanda Kochhar’s husband Deepak Kochhar has had many business dealings with Videocon Group over the last several years. Deepak Kochhar and Videocon chief Venugopal Dhoot were co-founders and promoters of NuPower Renewables, besides other associations.
On September 18, Sebi said that private lender ICICI Bank has expressed "intent informally" for consent plea to settle allegations against Chanda Kochhar related to lapses in corporate governance in the Videocon case.
Sebi had earlier issued show cause notice to ICICI Bank, Chanda Kochhar and others after a preliminary probe showed alleged violations of listing disclosure norms. The preliminary probe found Kochhar’s husband having several business dealings with Videocon Group for many years. ICICI Bank has replied to the show cause notice.
Kochhar is believed to have maintained that she had no information about her husband’s business dealings; the bank has given similar replies.
ICICI Bank is being probed for a number of serious allegations including about disclosure lapses regarding business dealings of Deepak Kochhar and his brother Rajiv Kochhar, who are suspected to be directly or indirectly linked to the bank or its big borrowers.
Shares of ICICI Bank have risen by nearly three percent post the announcement, as of 2:10 PM.
(With inputs from PTI)