ICICI Bank board begins hunt for new chairman: Report

ICICI Bank

The board of ICICI Bank has begun looking for a new chairman as the term of the incumbent, MK Sharma, expires at the end of this month and he may not want a second term, said a report by The Economic Times.

Quoting anonymous sources, it added that veteran banker and former Bank of Baroda chairman and managing director, MD Mallya, is the frontrunner to succeed 70-year-old Sharma.

Mallya was recently appointed to the ICICI Bank board as an independent director on May 29.

“The ICICI Bank board was of the opinion that the bank needs a qualified former banker for the position in this time of crisis. Nothing is final yet, but looks like Mallya is the favourite,” the report quoted.

Over the last two months, the allegations of nepotism and conflict of interest in granting loans to Videocon Group against ICICI Bank CEO Chanda Kochhar have been rife. But the board and the chairman on multiple occasions have clarified their stand to back Kochhar.

Since the issue first came to light in March-end, at least three positions of directors including Mallya's and government nominee on the board have seen reappointments.

Sharma was appointed as non-executive chairman of the bank on July 1, 2015, for a period of three years.

The ET report points out that while a few board members want current chairman MK Sharma to continue for some time, he has expressed his unwillingness. However, if the board is unable to find a successor soon, Sharma may have to continue as chairman, the report said.