Chanda Kochhar quits ICICI Bank with immediate effect; Sandeep Bakhshi to take over

ICICI Bank, in a filing to the Bombay Stock Exchange on Thursday, said that its board of directors has accepted the request of CEO and MD Chanda Kochhar “to seek early retirement” with immediate effect while the ongoing “enquiry instituted by the Board will remain unaffected”. “The Board of Directors of ICICI Bank Limited, accepted the request of Ms Chanda Kochhar to seek early retirement from the Bank at the earliest. The Board accepted this request with immediate effect. The enquiry instituted by the Board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry. Ms Kochhar will also relinquish office from the Board of Directors of the Bank’s subsidiaries. The Board decided to appoint Mr. Sandeep Bakhshi as Managing Director & Chief Executive Officer. His appointment will be for a period of five years until October 3, 2023, subject to regulatory and other approvals. The other terms and conditions of his appointment, such as remuneration, would remain unchanged. Separately, due to health reasons Mr MD Mallya, Independent Director, resigned from the Board and the same was accepted,” according to the statement. This is post the outcome of the meeting of the Board of Directors of ICICI Bank held on 4 October. The note said: The Board of Directors of ICICI Bank Limited, accepted the request of Ms Chanda Kochhar to seek early retirement from the Bank at the earliest. The Board accepted this request with immediate effect. [caption id=“attachment_4489463” align=“alignleft” width=“380”]  A file photo of Chanda Kochhar, MD and CEO, ICICI Bank. Reuters.[/caption] Following the announcement, the stock soared 5.69 per cent to Rs 320.90 on BSE. On NSE, shares of the company jumped 5.77 percent to Rs 321.25.’ The enquiry instituted by the Board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry. Ms Kochhar will also relinquish office from the Board of Directors of the Bank’s subsidiaries. N Vaghul, former CMD of ICICI Bank said he is happy with the Board’s decision to accept Kochhar’s resignation. The impasse ends with Kochhar’s resignation, ending uncertainty, he said, according to CNBC-TV18. The Board decided to appoint Sandeep Bakhshi as Managing Director and Chief Executive Officer. His appointment will be for a period of five years until 3 October, 2023, subject to regulatory and other approvals. The other terms and conditions of his appointment, such as remuneration, would remain unchanged. Separately, due to health reasons MD Mallya, Independent Director, resigned from the Board and the same was accepted. Earlier in June, Kochhar had decided to go on leave till the completion of an external enquiry into alleged conflict of interest in extending loans to some corporates like Videocon and named Sandeep Bakhshi as the chief operating officer, the bank announced.