Moneycontrol
Last Updated : Jun 19, 2018 03:40 PM IST | Source: Reuters

ICICI naming interim head calms investor nerves, but more clarity awaited

Kotak Securities says it sees the development as an important step to address a key concern that has been a headwind to the stock in recent months.

 
 
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Brokerages welcome the management revamp at ICICI Bank but await more clarity on a probe into nepotism allegations against CEO Chanda Kochhar and possible succession.

Mumbai-based lender on Monday named group veteran Sandeep Bakhshi as interim head, and said Kochhar would go on leave till the completion of a probe into alleged conflict of interest over loans given to Videocon whose founders had an interest in a renewable company founded by her husband.

Kotak Securities says it sees the development as an important step to address a key concern that has been a headwind to the stock in recent months.

While Bakhshi’s appointment is “a step better”, still too many questions left unanswered, fund manager who holds ICICI shares says.

Morgan Stanley says Bakhshi will likely be a front-runner for the CEO job as Kochhar’s current term ends in early 2019, although board could also look for external candidates.

Despite being inexpensive, ICICI stock could continue to lag peers in the near term given the uncertainty around top management, Morgan Stanley says.
First Published on Jun 19, 2018 03:40 pm
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