ICICI Bank Ltd. denied media reports that CEO Chanda Kochhar was asked to go on indefinite leave pending the conclusion of an independent inquiry into her connection to an improper loan to Videocon Group.
The bank said June 1 that Kochhar was on a planned annual leave and refuted reports that a search committee was in place to find Kochhar's successor.
Kochhar was reportedly asked to go on leave on the advice of a majority of the seven independent directors on the bank's board, Mint reported June 1, citing sources. One source said the bank's directors thought the allegations against the CEO and ICICI Bank could not be dealt with internally.
The lender plans to conduct an independent inquiry into allegations against the CEO, including a conflict of interest over loans made to Videocon Group, whose chairman, Venugopal Dhoot, had a business relationship with her husband, Deepak Kocchar.
The bank had reportedly conducted an internal probe following a complaint in 2015-2016 and cleared Kochhar, sources told the publication. The latest whistleblower charges, which were similar to the previous complaint, had prodded the directors to look at an external investigation.
The new probe will look at details surrounding the complaint since Kochhar's appointment in 2009. The source said the board is also looking at a succession plan if Kochhar decides to quit or any wrongdoing is uncovered by the investigation.
