InvestorQ : Why is ICICI Bank now seeking compensation from Chanda Kochhar more than a year after her resignation?
Katherine Gonsalves made post

Why is ICICI Bank now seeking compensation from Chanda Kochhar more than a year after her resignation?

Answer
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Arti Chavan answered.
8 months ago


Actually, Chanda Kochhar had resigned from the bank in 2018 after allegations about her involvement in the quid pro quo received by her family on loans given to the Videocon group. Subsequently, when the investigations found serious evidence, the bank had removed her from the post and had also held back all benefits given by the bank post 2008. Subsequently, the ED had also attached her properties believed to have been acquired out of the proceeds of the quid pro quo including her apartment in South Mumbai.

Now the bank wants Chanda Kochhar to compensate the bank for the reputational loss caused to the bank due to her actions. According to a statement by the bank’s board, the bank had taken a huge hit in terms of valuation and prestige due to the actions of the former CEO. While this may be difficult to quantify, the board felt that these were not the outcome of genuine business decisions but a clear attempt to enrich herself at the cost of the company’s reputation. The bank wants her to compensate the bank for the reputational loss caused to the bank.