ICICI Bank stock falls after traders digest Sandeep Bakhshi appointment as COO

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26 Aug, 2025 12:21

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ICICI Bank share price fell as much as a percent in morning on Tuesday after the news that the board appointed Sandeep Bakhshi as Chief Operating Officer (COO) of the bank priced in. The stock had rallied 3.6 percent on Monday.

"The board of directors on Monday decided to appoint Sandeep Bakhshi, as Wholetime Director & Chief Operating Officer designate, ICICI Bank. His appointment as COO will be for a period of five years, subject to regulatory approvals," the bank said in its statement.

Bakhshi will take over as the COO from June 19, 2018, or on the date of regulatory and other approvals, whichever is later, it added.

The bank said he will be responsible for handling all the businesses and corporate centre functions at the bank. "All executive directors on the board of ICICI Bank and the executive management will report to him."

Bakhshi will report to Chanda Kochhar, who will continue in her role as MD & CEO of the country's largest private sector lender.

In line with the highest levels of governance and corporate standards, Kochhar has decided to go on leave till the completion of the enquiry against her in the Videocon loan matter as announced on May 30, 2018.

Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to the Videocon group. Last month, the bank had announced an independent enquiry into the allegations against Kochhar following a complaint from a whistle-blower.

Bakhshi has been the Managing Director & CEO, of ICICI Prudential Life Insurance Company, since August 01, 2010.

The bank board also recommended to the board of directors of ICICI Prudential Life Insurance Company to appoint N S Kannan as the Managing Director & Chief Executive Officer (CEO) of the company subject to regulatory and other approvals.

"COO role strikes us as unnecessary in the long term," Jefferies said while retaining its Buy call on the bank with a target price of Rs 380 per share. "Valuations are cheap at current levels."

Sandeep Bakhshi's deep association should aid a smooth transition, it believes.

The research house feels operating environment has been improving & the bank is able to arrest fresh non-performing loans formation.

Another global brokerage firm Citi also maintained its Buy call on ICICI Bank with a target price of Rs 390, saying the appointment of Bakhashi significantly reduced the uncertainty among all stakeholders regarding management.

IDFC Securities, too, retained Buy rating with a target price of Rs 370 as it feels new COO reinstilled confidence in management. "Arrangement seems win-win for both ICICI Bank and ICICI Prudential Life Insurance. The likelihood of Mr Bakshi being selected as new CEO is very high."

At 09:42 hours IST, the stock price was quoting at Rs 290.80, down Rs 1.70, or 0.58 percent on the BSE.