ICICI Bank board denies finding Chanda Kochhar's successor, says CEO on her 'pre-planned' leave

ICICI Bank board denied reports of asking CEO Chanda Kochhar to go on leave till the investigation of her alleged role in Videocon loan case gets over. Citing persons close to the development, a report in Mint on Friday stated that Chanda Kochhar has been asked to go on leave for an indefinite period. 

The decision to ask Kochhar to go on leave has been taken on the advice of a majority of the seven independent directors on the bank’s board, the person said. The enquiry, likely to be headed by a retired judge of the Supreme Court, will begin next week and will be completed in two months, the source told the newspaper. 

However, denying the report, an ICICI Bank spokesperson said, "the ICICI Bank Board denies having asked Ms. Chanda Kochhar to go on leave. She is on her annual leave which was planned in advance. Further, the Board denies that it has appointed any search committee to find her successor.” 

“A new whistleblower complaint came 15-20 days back. It came to our notice as well. The bank’s board and top management first met and then the independent directors decided to meet separately. So the independent directors met on 29 May. The charges made against the bank and its CEO are quite harsh and the independent directors thought that such allegations cannot be dealt with internally,” the person said on condition of anonymity.

ICICI Bank on Wednesday said that it would probe the alleged role of its CEO Chanda Kocchar in Videocon loan case.  ICICI Bank Ltd said on Wednesday it will institute an inquiry into the allegations raised by an anonymous whistleblower against Chief Executive Chanda Kochhar.

The enquiry will be conducted by an “independent and credible” person appointed by the bank, the private lender said in a BSE filing. “The scope of enquiry would be comprehensive and include all relevant matters arising out of and in the course of examination of the facts and wherever warranted, use of forensics/email reviews and recordal of statements of relevant personnel etc,” the ICICI notification read.

The shadow of Videocon loan case has been casted over Chanda Kochhar's appointment as Chief Executive Officer of ICICI Bank. 

Earlier, it was reported that the ICICI bank board has been reportedly divided over whether to ask Chanda Kochhar to step down as CBI probes her own role, her husband's and brother-in-law allegedly involvement over loans made to Videocon group.

According to a news report, there are some outside directors who are of view that Chanda Kochhar should not be allowed to countinue her role as ICICI's MD and CEO. 

It is also to be noted that prior to that, when the entire controversy came in public, the ICICI board expressed its full faith in Chanda Kochhar.  

The board said that it has full faith and confidence in her and described certain reports against her regarding credit disbursement to Videocon group as "malicious and unfounded rumours".

ICICI Bank board also reviewed the bank's internal processes for credit approval and found them robust, the private sector lender said in a regulatory filing. 

The statement came after certain reports appeared on a website alleging involvement of Chanda Kochhar and her family members in a loan provided to Videocon group on quid pro quo basis. It was also pointed out that a complaint had been forwarded to Prime Minister Narendra Modi and others for necessary action against Chanda Kochhar.