ICICI Bank has sacked its former managing director and chief executive officer Chanda Kochhar, four months after she resigned, saying that she is seeking early retirement.
Former Chief Executive Officer of ICICI Bank, Chanda Kochhar might need to pay repay the lender a sum of Rs 350 crore, an Economic Times report stated. The move would likely to happen because of the ICICI Bank'sinvocation of the termination clause.
According to the data collected by the newspaper, 94 lakh shares were issued to Chanda Kochhar between FY09 and FY18, the period for which the bank has sought a claw-back of all dues and stock options. But it is not clear yet how many of those options had been exercised and vested, and how many are yet to vest, the report said.
Between FY09 and FY18, Kochhar received shares in all the years except in 2009, the bank’s annual reports showed. Based on Wednesday’s closing price of Rs 365 per share, the value of Kochhar's accumulated ESOPs awarded in the period aggregates to Rs 343 crore. To be sure, the total value of the shares assumes that she has taken the entire stock allocated in the ESOPs, the publication stated.
ICICI Bank has sacked its former managing director and chief executive officer Chanda Kochhar, four months after she resigned, saying that she is seeking early retirement.
The Board said the action was the fallout of an inquiry by a panel headed by Justice B N Srikrishna, which indicted the high-profile executive of violating the bank's code of conduct.
The bank has also revoked all her bonuses from April 2009 to March 2018 and all other existing and future entitlements, including stock options and medical benefits.
The bank's Board was forced to take the action after Srikrishna panel, which was probing into the quid-pro-quo transactions in ICICI Bank, indicted the former CEO saying that she violated the ICICI's code of conduct and internal policies. She now has to return bonuses paid from April 2009 to March 2018 to take such further actions as may be warranted in the matter, ICICI Bank said in a statement.
Chanda Kochhar said in a message, "I am utterly disappointed, hurt and shocked by the decision. I have not been given a copy of the report. I reiterate that none of the credit decisions at the bank are unilateral. I have served ICICI Bank for 34 years with all my dedications and hard work. I have never shied away from taking tough decisions whenever required to be taken in the best interest of the organisation. This decision of the bank has caused me immense hurt and pain."
The action comes exactly 10 months after the ICICI Bank Board had come out strongly in support of its then CEO and MD, saying that it has full faith and confidence in her and described certain reports against her regarding credit disbursement to the Videocon group as "malicious and unfounded rumours".
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 "Videocon-ICICI Bank loan case: Ex-CEO Chanda Kochhar may have to repay bank about Rs 350 crore, claims Report")
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