The Reserve Bank of India may seek additional information from ICICI Bank on the changes in the top management, even as all eyes are now on the central bank on whether it will begin to look into the allegations of corporate misconduct and quid pro quo in loans at the private sector lender or await the findings of the internal probe.
ICICI Bank is also understood to be in touch with the RBI over a proposal to appoint a new Non-Executive Chairman as the current incumbent MK Sharma’s term gets over at the end of the month.
“There is tremendous expectation that the RBI should swing into action. But a full inquiry by the central bank at present is unlikely. It could, however, seek more details on what prompted the changes at the private sector lender,” said a person familiar with the development.
The Finance Ministry, which has refused to intervene, has also firmly indicated that it is up to the bank’s board and the regulator to look into the allegations. “In the case of concerns at public sector banks, the Finance Ministry has some say. But in private banks, it cannot do so,” noted the person.
Until now, the RBI has remained silent in public on the controversy surrounding ICICI Bank Managing Director and CEO Chanda Kochhar and allegations of corporate misconduct. Earlier this week, she decided to go on leave until the completion of the internal enquiry initiated by the bank’s board, which is being led by retired Supreme Court Judge Justice BN Srikrishna.
The board has also appointed Sandeep Bakhshi, who was till recently the chief of ICICI Prudential Life Insurance, as Wholetime Director and Chief Operating Officer designate at ICICI Bank.