ICICI Bank MD and CEO Chanda Kochhar, who has been in the midst of a storm with allegations of quid pro quo for giving loans, may be given a “graceful” exit at the end of her tenure, according to sources in the know.
Kochhar’s term comes to an end in March next year and the bank could announce her decision to step down towards the end of this year, giving ample time for a successor to be appointed and groomed.
In 2013, ICICI Bank had reappointed the entire top management team for another five years until 2019.
Kochhar was appointed MD and CEO in 2009. Her five-year term was to get over in 2014 but she was given another term. Her current tenure comes to a close on March 31, 2019.
There is an increasing clamour from investors to clear the air over the allegations and questions over a potential successor to Kochhar.
Chanda Kochhar’s husband Deepak Kochhar and his firm NuPower Renewables are being investigated by the CBI and Income Tax authorities over allegations of quid pro quo for a ₹3,250-crore loan given by the bank to the Videocon Group in 2012.
The board of the bank has staunchly stood behind Kochhar, giving her their full support and confidence, and has also denied any talks of a succession plan till now.
“But letting her complete her term may be the best way to show the board’s continued support and also get a new MD and CEO, as there have been enough concerns among investors and a few members of the board over the allegations and the CBI enquiry,” said a source.
Sources also pointed out that it could be a logical move as 10 years is a long time for a person to remain at the same post.
In this regard, the meeting of the Board of Directors of the bank will be crucial. Though the main agenda is approving the bank’s results, discussions on the loans are also likely to take place.