ICICI Bank has fired Ex-MD Chanda Kochhar with retrospective effect and also revoked her stock options currently valued around ₹346 Crore. The bank will also reclaim from her bonuses worth ₹10 Crore for the last 9 years.
This decision came after Retired Judge BN Srikrishna’s report which says that Kochhar had violated the bank’s code of conduct in approving loans to Videocon group and failed to make proper disclosures.
Allegations of conflict of interest against the Kochhar first arose in October 2016. At the heart of the scandal was a 32.5 billion rupee ($456 million) loan sanctioned to Videocon Group. Kochhar’s husband had beneficial business dealings with Videocon Managing Director Venugopal Dhoot, yet the CEO didn’t recuse herself from the credit committee that sanctioned the loan in 2012.
When the inquiry was initiated Kochhar only agreed to go on leave. It’s only now when report concluded that there was a violation of the bank’s code of conduct that ICICI has decided to treat her October resignation – tendered while she was on leave – as a termination. Kochhar says she is “utterly disappointed, hurt and shocked” by the decision.
This leaves a huge question mark on Indian Banking System how once an Invincible CEO of the largest private bank has been caught misusing her chair for her own benefits and played with public money.
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