Indicted & sacked

New Delhi, January 30 

An independent inquiry has indicted former CEO of ICICI Bank Chanda Kochhar for violating various regulations. The bank has decided to stop all unpaid retirement benefits and recover bonuses paid to her since 2009. The leading private sector lender, which had given a clean chit to Kochhar in the Videocon loan matter, will treat her resignation as ‘Termination for Cause’. 

The development comes days after the CBI filed an FIR naming Kochhar and others in the alleged quid pro quo in extending a Rs 3,250-crore loan to the Videocon Group. An independent inquiry panel led by Justice (retd) BN Srikrishna observed that Kochhar violated bank policies and rules. Based on the findings, the ICICI Bank board has advised “further action as may be warranted in the matter”.

The committee report concluded  there was lack of diligence with respect to annual disclosures as required by the bank in terms of its internal policies and violation of Code of Conduct and applicable laws. ICICI Bank CEO Sandeep Bakhshi said the bank had put out a statement on Kochhar and the lender’s role now was limited to cooperating with regulatory agencies. In March 2018, the board of ICICI Bank had given a clean chit  to Kochhar, ruling out favouritism, nepotism or conflict of interest on her part in granting loans to Videocon Industries or any other company. The board, following the receipt of the inquiry report on Wednesday, decided to treat "the separation of Kochhar from the bank as a 'Termination for Cause' under the bank's internal policies, schemes and the Code of Conduct, with all attendant consequences".

These include revocation of existing and future entitlements, such as any unpaid amounts, unpaid bonuses or increments, unvested and vested and unexercised stock options, and medical benefits. The board has asked the bank to take steps for "clawback of all bonuses paid from April 2009 until March 2018". — PTI

RISE AND FALL

• Kochhar became CEO of the country’s leading pvt sector lender in 2009; left the bank in Oct 2018

• A high profile banker, she was bestowed with Padma Bhushan in 2011

• There were charges of Kochhar’s role in a loan to Videocon Group on a quid pro quo basis

•  It was alleged the group had put money into NuPower Renewables owned by her husband Deepak 

• The allegation of conflict of interest was made by whistleblower Arvind Gupta 

• Later in March, unnamed whistleblower alleged deliberate delay in recognising impairment in 31 loan accounts between 2008- 2016 to save on provisioning costs

• These allegations led to probes by multiple agencies, including the CBI, ED and SFIO, and also questioning of Kochhar’s kin

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  • • BANK RANKING DIPS
    • • From performance perspective, when Chanda Kochhar took over,  ICICI Bank was the second largest in the system and the largest among its private sector peers. But at the end of her stint at the bank, it was reduced to No. 3 and the second largest private sector lender after HDFC by a wide margin. PTI