Chanda Kochhar, former CEO of ICICI Bank, has been found guilty by the Justice BN Srikrishna Committee for violation of the Code of Conduct. In such a situation, Kochar’s resignation can be a reason for her dismissal and the bank can stop other pending payments, including her bonus.
The report says, “Chanda Kochhar violated the framework of the ICICI Code of Conduct, the prevention of conflict of interest.”
At the same time, the bank has decided to withdraw Kochhar’s bonuses from April 2009 to March 2018. The amount will be recovered with interest.
Nearly a week ago, the CBI had raided several places in the Videocon loan case and filed an FIR against Chanda Kochhar and others, including her husband Deepak Kochhar. Kochhar is charged with irregularities while giving loan of Rs 3,250 crore to Videocon Group. It is believed that the CBI will soon call them for questioning.
It is worth mentioning that Videocon promoter Venugopal Dhoot allegedly invested crores of rupees in Nupower after the loan of Rs 3,250 crore received from ICICI Bank by Videocon Group in 2012. Nupower is under the joint ownership of Deepak Kochhar, the husband of Chanda Kochhar, former CEO of ICICI Bank and Supreme Power.
After the matter came to light, the CBI registered a primary investigation (PE) in March last year against Venugopal Dhoot, Deepak Kochhar and unknown people. On Wednesday, the company has also released results of the third quarter. In the December quarter, the bank’s profit declined by 2.75 percent to Rs 1604.91 crore. In the same quarter last year, the bank had made a profit of Rs 1650.24 crore.
Chanda Kochhar resigned after the allegations in October last year, in which it was said that she bypassed the rules by favoring Consumer Electronic and Oil and Gas Company Videocon and gave them loans. ICICI Bank Ltd said on Wednesday said that former Chief Executive Executive Chanda Kochar will be considered leaving the job under ‘Termination for Cause’ as it has come out in the Enquiry Report that she has violated internal bank policies.