ICICI backs Kochhar, gets her on bank's securities board

ICICI Bank, which holds 80 per cent stake in ICICI Securities, on Thursday voted in favour of having Chanda Kochhar on the board of ICICI Securities.Kochhar, CEO and Managing Director of ICICI Bank, was earlier sent on leave as the lender launched an independent probe into the allegations of conflict of interest in the bank advancing large loans to the Videocon group, which allegedly had some tieups with the private lender. The private lender had earlier put itself in a spot by proposing the name of Kochchar for the board position.The vote almost seals her position as director at the broking firm, as ICICI Bank holds a majority 80 per cent stake.Corporate governance activists questioned the move. “Wondering if decision to send Kochhar on leave was an eye-wash,” said Shriram Subramanian of InGovern, a proxy advisory and corporate governance firm.Subramanian said ICICI Bank has put itself in a difficult position by proposing Kochhar's name. "As she was sent on leave, how can she attend board meetings," he asked.US-based proxy firm Glass Lewis had earlier said that the mere fact that she (Kochhar) has been forced to take leave may be representative of serious lapses in governance that carry reputational risks which may negatively impact the company.

from The Economic Times https://ift.tt/2LEbDIJ