Kochhar to be on leave pending enquiry; Bakhshi appointed COO

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Mumbai: ICICI Bank Monday announced that its CEO Chanda Kochhar has decided to go on leave till the completion of an external enquiry into alleged conflict of interest in extending loans to some corporates such as Videocon and named Sandeep Bakhshi as the chief operating officer.
Bakhshi, who has been the MD and CEO of ICICI Bank’s life insurance arm, would handle “all the businesses and corporate centre functions” of the bank. His appointment is for a period of five years starting tomorrow, subject to various approvals.
“All executive directors on the board of ICICI Bank and the executive management will report to him. Bakhshi will report to Chanda Kochhar, who will continue in her role as MD and CEO of ICICI Bank,” the bank said in a statement. In Kochhar’s absence, he would report to the board.
The latest development also comes against the backdrop of Kochhar and her family members facing allegations of quid pro quo and conflict of interest with respect to a loan extended to certain entities, including the Videocon group. Multiple agencies, including the CBI and regulator Sebi, are already probing the alleged lapses involving Kochhar and her family members.
“Kochhar has decided to go on leave till completion of the enquiry as announced on May 30. The board has noted and accepted this. During her period of leave, the COO will report to the board,” the statement said.
The current tenure of Kochhar, who has been at the helm since 2009 and has been on “annual leave” for some time now, ends next March.
Apart from being the COO, Bakhshi would be a whole-time director and a board member. He has been with the ICICI Group for over three decades and was the deputy managing director of the bank before going to head the life insurance business in 2010.
At ICICI Prudential Life, the bank’s executive director N S Kannan would replace Bakhshi as the MD and CEO.
Kochhar, a career ICICI Group employee has been under the cloud since late March, when allegations of conflicts of interest and possible quid pro quo in lending to Videocon group, along with lack of disclosures by the bank, made headlines.