Disappointed, hurt and shocked: Chanda Kochhar on ICICI sacking her

The inquiry found former ICICI Bank CEO and MD Chanda Kochhar of violating the company's code of conduct and internal policies, the bank said on Wednesday and added it would see her exit as termination of service.

ICICI said in a statement that the inquiry revealed Chanda Kochhar was "in violation of the ICICI bank code of conduct, its framework for dealing with conflict of interest and fiduciary duties and in terms of applicable Indian laws, rules and regulations".

The report accused her of "lack of diligence" concerning ICICI's internal policies, code of conduct and in avoiding conflict of interest. "The bank's processes were rendered ineffective by her approach...," the inquiry said.

"I reiterate that none of the credit decisions at the bank are unilateral. ICICI is an institution with established robust processes and systems which involve committee based collective decision making with several professionals of high caliber participating in the decision making. Hence the organization design and structure obviate the possibility of conflict of interest," Kochhar said in a statement.

Reports said the bank would now seek the return of all bonuses paid to Kochhar over the years.

Last week, the CBI has named Chanda Kochhar in the FIR along with her husband Deepak Kochhar and Videocon chief Venigopal Dhoot in a loan irregularity case.

The central investigating agency also raided Videocon offices in Mumbai and Aurangabad last Thursday morning.

According to The Indian Express, Dhoot had provided Rs 64 crore to a firm called NuPower Renewables Pvt Ltd that he had set up with Deepak Kochhar and two relatives six months after the Videocon group got Rs 3,250 crore as loan from ICICI Bank in 2012. Rs 2,810 crore of the loan remains unpaid.

ICICI has been embroiled in a controversy over allegations that its former head, Kochhar, had favoured Videocon in the bank’s lending practices. After initially backing Kochhar, the bank had announced to conduct a "comprehensive enquiry" to investigate the charges. Eventually, a multi-agency probe was started.

Kochhar quit the bank in October, 2018 seeking early retirement after going on indefinite leave in June of that year pending an external enquiry against her on allegations of conflict of interest and quid pro quo charges relating to a loan given to Videocon group.

Kochhar, 56, who had headed ICICI Bank since May 2009, also stepped down from the board of directors of its units at that time.