Chanda Kochhar, who was consistently rated as of the world’s most powerful women in business, has resigned from ICICI Bank following months of escalating controversy, and amid multiple investigations. And now Sandeep Bakshi is appointed as new MD & CEO of ICICI Bank.
In 1984, Chanda Kochhar joined ICICI as a management trainee and 25 years later became the MD & CEO. Almost a decade after her ascension to the top, she has tumbled down under the weight of serious allegations of misconduct and corruption and a CBI inquiry that followed.
Kochhar has now sought an early retirement and the bank has accepted her resignation. At the center of the storm is Kochhar’s husband Deepak Kochhar, whose company NuPower Renewables allegedly received an investment.
How it all began
The Videocon loan issue was first raised by whistle-blower Arvind Gupta in 2016 when he wrote about it on a blog. He accused Kochhar of conflict of interest and corporate misconduct while sanctioning loans to the Videocon group.
He wrote to the Prime Minister, the Reserve Bank of India governor and several other authorities demanding a probe but. However, his complaint drew no response from the authorities. The issue came to the limelight when early this year a newspaper published an investigation of Gupta’s allegations. Initially, ICICI BankNSE 4.21 % denied that there were any irregularities in the loan given to Videocon and backed Kochhar.
What was the Videocon deal?
ICICI Bank had granted a Rs 3,250 crore loan to Videocon Industries in 2012. The Videocon loan later turned a non-performing asset. Gupta alleged that loan was given due to business relations between Kochhar’s husband Deepak Kochhar and the Videocon Group.
Why She Quit Now?
Indications that the Justice Srikrishna of interest wasn’t going in her favor.
Investigations were taking longer than expected and uncertainty was affecting the stock price.
Resignation relieves her from the code of conduct rules of the bank and frees her to pursue other interests.
Changes in ICICI bank share price after Joining(Years) and after resigning(Intraday).