ICICI Bank CEO Chanda Kochhar, who is on indefinite leave pending a probe against her in an alleged quid pro quo in loan sanctioning case, has offered herself to be reappointed on the board of ICICI Securities board.
Kochhar is set to retire from the board of ICICI Securities, a subsidiary of ICICI Bank. “In terms of section 152 of the Act and Articles of Association of the Company, Chanda Kochhar would retire by rotation at the forthcoming AGM and is eligible for re-appointment. The annual general meeting (AGM) of ICICI securities is on August 30. “Chanda Kochhar has offered herself for re-appointment,” said the annual report for 2017- 18 of ICICI Securities.
Kochhar is the Chairperson of the bank’s subsidiary. There are allegations of impropriety on part of Kochhar in ICICI Bank extending loans to some companies and enjoying reciprocal benefits. It has been alleged that her family members, including her husband Deepak Kochhar, got financial favours from the borrowers against the loans sanctioned by the bank.
Sebi has already served a notice on Kochhar on dealings of the bank with Videocon Group and Nupower. An independent probe has also been launched by ICICI Bank board to look into the matter.
There are eight members on the board of ICICI Securities of which four are independent directors, two are non-executive non-independent directors who are nominated from ICICI Bank and two are whole time directors.
Two members–Managing Director & CEO Shilpa Kumar and Executive Director Ajay Saraf are the whole-time directors on the board of ICICI Securities. ICICI Securities, Headquartered in Mumbai, offers financial services including brokerage, financial product distribution and investment banking, catering to both retail and institutional clients.
During fiscal ended March 2018, the company was listed on the stock exchanges through the initial public offer (IPO). The IPO was completed through an offer for sale by holding company ICICI Bank. (PTI)
Ambivalence over Chanda’s office to end in Nov
Whether Chanda Kochhar will continue as managing director and CEO of private sector lender ICICI Bank will become clearer by the end of November. The bank’s chairman GC Chaturvedi stated on Thursday that the Justice B N Srikrishna-headed panel, which is probing alleged malpractices at the bank, is expected to file its final report within two-and-a-half months.
Chaturvedi said that a decision on Kochhar will be taken after the panel reveals its findings. The beleaguered bank CEO has been on indefinite leave since June, when allegations of impropriety on Kochhar’s part were made by a whistleblower with regard to certain loans to the Videocon group.
The panel is now probing Kochhar and her family members for any instances of quid pro quo and conflict of interest. Chaturvedi, however, added that pending the report, Kochhar remains the CEO of ICICI Bank. “The bank is yet to reply on Videocon notice by SEBI as we are waiting for Srikrishna panel report,” he told reporters here.
Agencies such as CBI and SEBI are already probing the alleged lapses involving Kochhar and her family members. The current tenure of Kochhar, who has been at the helm since 2009, ends next March.