2009: Kochhar takes over the reins at ICICI Bank in May.
Kochhar, the managing director and chief executive officer (CEO) of ICICI Bank, the country's second-largest private sector lender, has faced allegations of nepotism and favouritism in loan disbursal to NuPower Renewables, a firm founded by her husband Deepak Kochhar.
Despite being affordable, ICICI stock could continue to lag peers in the near term given the uncertainty around top management, Morgan Stanley says. The board didn't see any conflict of interest in Kochhar not recusing herself from the credit committee that had cleared the Videocon loan. Shares of ICICI Bank rose by 3.61 per cent on reports of a shuffle in its top management.
It was alleged that a company related to Videocon group chairman Venugopal Dhoot invested ₹64 crore in NuPower in 2010 and later, the proprietorship of the company was transferred to a trust owned by Mr. Kochhar for ₹9 lakh after the Videocon Group received a loan of ₹3250 crore from ICICI Bank in 2012.
Bakhshi will be responsible for handling all businesses and corporate centre functions at ICICI Bank, and all Executive Directors on the Board and the executive management will report to him. Kochhar returns, Mr. Bakhshi will report to her.More news: Night club stampede claims 17 lives
The board of directors of the bank, which had come out in strong support of Kochhar when the complaints surfaced in March, announced the decisions after a daylong meeting to try and quell mounting criticism of its governance practices.
Kochhar had until recently enjoyed full support of the board, but following a fresh anonymous allegation complaint against Kochhar from a whistleblower - the second such person to do so - the board chose to investigate into the allegations of a quid pro quo against Kochhar.
Though the bank's board had initially backed the CEO, pressure was mounting on Kochhar to either step down or recuse herself from the daily operations of the lender until the enquiry was completed.
On April 05, the government changes its nominee on ICICI Bank's board.
On June 1, the bank had said Kochhar had proceeded on her planned annual leave. It's unclear what led to this move, but questions are raised on the board's hasty decision to clear Kochhar of all charges without a probe. Media reports said retired Supreme court judge BN Srikrishna would head the probe.