ICICI sacks Chanda Kochar after inquiry finds she violated code of conduct

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.

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

Last week, the CBI has named former ICICI Bank MD and CEO Chanda Kochhar in the FIR along with her husband Deepak Kochhar and Videocon chief Venigopal Dhoot in a loan irregularity case, media reports said.

The central investigating agency also raided Videocon offices in Mumbai and Aurangabad on 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.

"The Board of Directors of ICICI Bank accepted the request of Chanda Kochhar to seek early retirement from the bank at the earliest. The Board accepted this request with immediate effect," the company had said then.

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

In June, Kochhar went on an indefinite leave 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.

ICICI Bank assured her  that the ongoing probe into allegations of financial impropriety and conflict of interest against her will remain unaffected.  "The enquiry instituted by the Board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry," the board said.