Chanda Kochhar, chief executive of ICICI Bank Ltd, has not been asked to go on leave until the internal probe is completed in order to verify the allegations made by a whistleblower, clarified ICICI Bank today. On the news of Kochhar going for indefinite leave, the stock rose 5per cent in the morning. It closed 3 per cent up at Rs 288.80.

ICICI Bank also denied setting up of any committee to find her successor. The bank said in a statement, “The ICICI Bank Board denies having asked Ms Chanda Kochhar to go on leave. She is on her annual leave which was planned in advance. Further, the Board denies that it has appointed any search committee to find her successor.”

On May 30 days, ICICI Bank announced to set up an independent enquiry into allegations of ‘conflict of interest’ and ‘quid pro quo’.

There are allegations that ICICI Bank-led consortium gave Rs 3250 crore loan to Videocon Dhoot. Her husband, Deepak Kochhar, later got loans on a quid pro basis in his company, NuPower Renewables, from Venugopal Dhoot.

ICICI Bank Limited informed the National Stock Exchange on May 30 regarding the decision taken by its Board of Directors on 29th May, 2018. The statement said, “It is decided to institute an enquiry to be headed by an independent and credible person, to examine and enquire into an additional anonymous whistleblower complaint, disclosing certain information, alleging in substance that Bank’s MD & CEO had not adhered to provisions relating to Code of Conduct of the Bank and legal and regulatory provisions relating to conflict of interest over a period of time, as also alleging quid pro quo in the course of her work in dealing with certain customers/borrowers of the Bank.”

M.K. Sharma, ICICI Bank Chairman, on March 29, denied reports alleging nepotism by Kochhar. He said that all allegations were unfounded and malicious in nature.