ICICI Bank to probe role of CEO Kochhar
Enquiry headed by independent person to examine allegations of conflict of interest after whistle-b lower complaint
Private sector lender ICICI Bank will conduct an independent enquiry into allegations of breach of code of conduct and conflict of interest against Managing Director and Chief Executive Chanda Kochhar after a complaint from an anonymous whistleblower. This comes soon after the Securities and Exchange Board of India (Sebi) served a notice to the bank and Kochhar.
The allegations of wrongdoing pertain to loans extended by ICICI Bank to the Videocon group, which had business relations with NuPower Renewables, owned by Chanda Kochhar’s husband Deepak Kochhar.
The enquiry will be headed by an “independent and credible person”, the bank said in a filing to the stock exchanges. The scope of the enquiry will be comprehensive and involve examination of facts as well as use of forensics and of statements of relevant persons. “The enquiry would also cover all connected matters in the course of the investigation to bring the matter to a final course,” it added.
The bank’s board has mandated its audit committee to take further actions, including appointing the head of enquiry and determining the terms of reference of the enquiry. It will assist the head of enquiry with the required legal and professional support.
ICICI Bank did not respond to Business Standard’s e-mail queries about the timeline for conducting the probe, name of the person heading the enquiry and the number of people to be involved in the process.