According to a report published by a news source, ICICI CEO and Managing Director Chanda Kochhar may have been asked by the bank board to go on an indefinite leave pending an independent enquiry to probe “conflict of interest” allegations against her regarding loans extended to Videocon Group. “She is on her annual leave which was planned in advance,” ICICI Bank, the country’s largest private sector bank, said in a clarification to stock exchanges.
The statement followed a report published by a source on Friday that said the Board had asked Kochhar to go on leave pending an independent enquiry to probe “conflict of interest” allegations against her regarding loans extended to Videocon Group. “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 source quoted an unnamed official.
The source report stated the information that Kochhar was asked to go on indefinite leave was divulged by a person with direct knowledge of the Board’s decision. The decision was taken based on the advice of a majority of the seven independent directors on the board, the report said.
However, in a notification to exchanges, the country’s largest private bank 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.”
On Wednesday, ICICI Bank’s Board of Directors had decided to institute a “comprehensive enquiry” to look into an anonymous whistle blower’s complaint alleging that Chanda Kochhar had not adhered to provisions relating to “code of conduct” of the bank. The bank is battling allegations that she allegedly favoured Videocon Group in its lending practices.
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