Private sector ICICI Bank is expected to take a decision on appointing a new Chairman to replace current incumbent MK Sharma by the end of the month.

While the former Bank of Baroda Chairman and Managing Director MD Mallya continues to be seen as the top contender for the post, sources said the lender may postpone a decision for some time. In such a case, board meetings can be chaired by one of the independent directors.

A decision is expected at the next meeting of the board of directors of ICICI Bank this week as Sharma’s term ends on June 30. He is understood to have indicated that he does not wish to continue.

Mallya, a seasoned banker who had also served as the CMD of Bank of Maharashtra and Chairman of the Indian Banks Association, is understood to be the top choice of most directors. The board of ICICI Bank has also been in contact with the Reserve Bank of India for its approval.

CBI probe

However, Mallya, along with five other former officials of Bank of Baroda, was questioned this year by the Central Bureau of Investigation with regard to the ₹2,919-crore alleged loan fraud by Rotomac.

“This is the only issue, which could pose a problem with foreign investors. Otherwise Mallya is the top choice,” said a source familiar with the development, adding that the bank board will have to take a decision with the RBI approval.

Alternatively, it could look to induct fresh people on the board, who can later serve as the Non-Executive Chairman of ICICI Bank.

Mallya was appointed to the board of ICICI Bank as an independent director on May 29. Other independent directors on the board include Uday Chitale, Dileep Choksi, Neelam Dhawan and Radhakrishnan Nair. The private sector lender is looking to improve its image with investors and customers after the recent allegations over corporate misconduct and quid pro quo against its Managing Director and CEO Chanda Kochhar in loans given to the Videocon Group. Kochhar is on indefinite leave until an independent inquiry initiated by the board, under former Supreme Court judge Justice BN Srikrishna, is completed.

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