This is the amount that Chanda Kochhar will have to return to ICICI bank


New Delhi, Srikrishna panel has indicted former CEO Chanda Kochhar and the ex-former banker is shocked for what she says is what she is getting after more than three decades of service.This comes as a major embarrassment for ICICI Bank when an independent enquiry has indicted former CEO Chanda Kochhar for violating various regulations. From a performance perspective, when she took over ICICI Bank was the second largest in the system and the largest among its private sector peers. But at the end of her stint at the bank, it was reduced to a distant No 3 in the system and the second largest private sector lender after HDFC Bank by a wide margin.

Kochhar will have to give back bonuses worth over Rs 9.82 crore,Top banker received Rs 26.9 lakh as a performance bonus in 2010; Rs 82.8 lakh in FY11, Rs 1.2 crore in FY12; Rs 1.79 crore in FY13; Rs 1.5 crore in FY14; Rs 1.6 crore in FY15; Rs 2.2 crore in FY17; and Rs 20 lakh in FY18. All these bonuses amount to over Rs 9.8 crore. She also received 2.1 lakh shares every year between FY10 and FY12. She also got 2.5 lakh shares in FY13; 14.5 lakh in FY14; 14.5 lakh in FY15; 15.9 lakh in FY16; 15.1 lakh each in FY17 and FY18, respectivelyHere are major 10 takeaways from this development which explains what all will be taken away from Chanda Kochhar:

1. The lender has decided to stop all unpaid retirement benefits and also recover bonuses paid to her since 2009.

2. An independent enquiry panel led by Justice (Retd) B N Srikrishna observed that Kochhar violated bank policies and other rules and regulations. Based on the findings of the panel, the ICICI Bank board has advised taking “further actions as may be warranted in the matter”.

3. The leading private sector lender, which had given a clean chit to Kochhar in the Videocon loan matter, will also treat her resignation as ‘Termination for Cause’. The latest development comes days after the CBI filed an FIR naming Kochhar and others in the alleged quid pro quo in extending Rs 3,250-crore loan to Videocon Group.

4. Meanwhile, ICICI Bank CEO Sandeep Bakhshi said in analyst call that the bank has put out a statement about Kochhar, and the lender’s role now is limited to cooperating with regulatory agencies.

5. In March 2018, the board of ICICI Bank had given a clean chit to Kochhar and had said there was no question of favouritism, nepotism or conflict of interest on her part in granting loans to Videocon Industries or any other company.

6. The board, following the receipt of the enquiry report, on Wednesday decided to treat “the separation of Kochhar from the bank as a ‘Termination for Cause’ under the bank’s internal policies, schemes and the Code of Conduct, with all attendant consequences”.

7. These, the statement said, include revocation of all her existing and future entitlements such as any unpaid amounts, unpaid bonuses or increments, unvested and vested and unexercised stock options, and medical benefits.The board has also asked the bank to take steps for “clawback of all bonuses paid from April 2009 until March 2018, and to take such further actions as may be warranted in the matter”.

8. Kochhar became the CEO and managing director of the country’s leading private sector lender in May 2009 and left the bank in October 2018. A high profile banker, Kochhar was bestowed with Padma Bhushan in 2011.

9. The report found that “Kochhar was in violation of the ICICI Bank Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations.”The Srikrishna committee report concluded that there was a lack of diligence with respect to annual disclosures as required by the bank in terms of its internal policies and violation of Code of Conduct and applicable Indian laws.

10. There were allegations of involvement of Kochhar and her family members in a loan provided to Videocon group on a quid pro quo basis. It was alleged that Videocon Group pumped money into NuPower Renewables, a firm owned by Deepak Kochhar, husband of Chanda Kochhar.The allegation of conflict of interest was levelled by whistleblower Arvind Gupta. Later, in March, another unnamed whistle-blower complained against the bank and its top management, including Kochhar, alleging a deliberate delay in recognising impairment in 31 loan accounts between 2008 and 2016 to save on provisioning costs.