Chanda Kochhar's stepping down as CEO to be treated as ‘Termination': ICICI Bank

New Delhi, Jan 30: ICICI Bank on Wednesday said that resignation of Chanda Kocchar, who allegedly violated the bank's code of conduct and rules on conflict of interest, would be treated as 'Termination for Cause'.

"Chanda Kochhar was in violation of ICICI Bank Code of Conduct, its framework for dealing with conflict of interest&fiduciary duties. Board of Directors has decided to treat separation of Chanda Kochhar from Bank as 'Termination for Cause' under Bank's internal policies," ANI quoted an ICICI Bank statement as stating.

Last week, the CBI registered a case against Chanda Kochhar, the former MD and CEO of ICICI Bank, her husband Deepak Kochhar, V N Dhoot, MD of Videocon group and others. It is alleged that accused sanctioned certain loans to private companies in a criminal conspiracy with other accused to cheat ICICI Bank.

ICICI Bank, India's third biggest lender, said it will treat Kochhar's resignation as "termination for cause" and will stop payment of unpaid benefits, including bonus, a Reuters report said.

In October 2018, Chanda Kochhar resigned from the ICICI bank in the wake of allegations against her. Kochhar also relinquished office from the board of directors of the bank's subsidiaries. The board then decided to appoint Sandeep Bakhshi as Managing Director & Chief Executive Officer for a period of five years.

The bank has been in focus due to conflict-of-interest allegations by a whistle blower against Kochhar over loans to Videocon Industries which she has denied. It was alleged that she did not disclose business dealings of her husband Deepak Kochhar with the Dhoots of Videocon.