RBI okays 3-yr term for Bakhshi as ICICI chief

New Delhi, October 16

Adopting a seemingly cautious approach, the RBI has approved appointment of Sandeep Bakhshi as ICICI Bank’s Managing Director and CEO for three years as against a five-year term sought by the lender.

ICICI Bank today informed the stock exchanges that the RBI has cleared Bakhshi’s appointment for three years effective from October 15.

After ICICI group veteran Chanda Kochhar — who was facing inquiry related to alleged nepotism and quid pro quo in extending loans to certain entities — resigned earlier this month, the bank announced appointment of Bakhshi as the MD and CEO for five years.

In recent months, the RBI seems to be exercising a cautious approach when it comes to re-appointment of chiefs of private sector banks, especially against the backdrop of rising non-performing assets in the banking system.

Last month, the central bank curtailed the proposed three-year term for Yes Bank MD and CEO Rana Kapoor, whose tenure was extended only till January-end. Similarly, the RBI had reportedly taken a tough stance in the case of re-appointment of Shikha Sharma as Axis Bank MD and CEO.

Bakhshi, who joined the ICICI group in 1986, was elevated from the post of Chief Operating Officer (COO) to MD and CEO of the bank after resignation of Kochhar on October 4.

The bank’s Board had decided that Bakhshi would have tenure of five years until October 3, 2023. However, the proposed term has been cut to three years by the RBI. — PTI