ICICI Bank shareholders on Thursday voted in favour of having Chanda Kochhar on the board of ICICI Securities, highly-placed sources told Moneycontrol. The bank holds 80 percent stake in ICICI Securities. The vote effectively seals Kochhar’s position as the director at ICICI Securities.
Kochhar, Chief Executive Officer (CEO) and Managing Director (MD) of ICICI Bank has been on leave since June and the bank is conducting an independent enquiry against her. A panel supervised by former Supreme Court judge BN Srikrishna is probing allegations of conflict of interest relating to loans given to Videocon group, which had investments in a firm founded by Kochhar's husband.
“It (Kochhar’s reappointment) is unfortunate. Ideally, she should have recused herself and the company itself should have put her in a tight spot. The board or the bank being the larger shareholders have voted for her," said Shriram Subramanian, Managing Director of InGovern, an independent corporate governance research and advisory firm.
"Now the question that arises is whether the Board of ICICI Bank is sort of keen to get to the bottom of this case or it (her being on leave and holding the enquiry) is just an eyewash,” he said.