Mumbai, June 11: ICICI Bank CEO Chanda Kochhar is in under heavy scrutiny of several Indian and foreign agencies for alleged irregularities in her dealing with certain borrowers. She can face a maximum penalty of Rs 25 crore from Securities and Exchange Board of India (SEBI) if found guilty.
The quantum of punishment will be at the discretion of Sebi’s adjudicating officer. However, there is no provision for asking the CEO to step down, as reported by Mint. Kochhar can also ask for a settlement by paying a fine and without admitting to any wrongdoing.
Recently ICICI Bank denied media reports regarding its CEO being asked to go on an indefinite leave by the bank board, till the independent inquiry was on. Reportedly, a fresh probe was ordered by the board of ICICI Bank after a new whistleblower made allegations that Kochhar violated the bank’s code of conduct, rules on conflict of interest and was part of quid pro quo dealings with certain bank borrowers.
The cases under scanner include the bank’s Rs 32.5 billion loan to Videocon Group in 2012 and the involvement of Kochhar family members in the restructuring of the loan. It was further alleged that Videocon Group pumped money into NuPower Renewables, a firm owned by ICICI Bank CEO's husband Deepak Kochhar.