Investors happy after Chanda Kochhar quits; ICICI Bank shares jump by 6%

ICICI Bank share price took a sudden jump on stock exchanges in today’s trading session. The performance of ICICI Bank was quite interesting as investors joy knew no bounds and this was reflected in the share price of the lender. This came after its MD & CEO Chanda Kochhar resigned  from her leadership position. ICICI Bank jumped by nearly 6% with an intraday high of Rs 320.90 per piece. The shocking part of it all is the fact that on this day, Sensex plunged as much as 800 points! At around 1500 hours, the bank was trading at Rs 313.50 per piece up by 3.26% on BSE. 

ICICI Bank revealed it has accepted the request of Chanda Kochhar to seek early retirement from the Bank and that too as early as possible. Kochhar will also relinquish office from the Board of Directors of the Bank's subsidiaries.

The Board accepted this request with immediate effect. 

Notably, the the enquiry instituted by the Board will remain unaffected by this and certain benefits will be subject to the outcome of the enquiry. 

On the place of Kochhar, ICICI Bank has appointed Sandeep Bakhshi as Managing Director & Chief Executive Officer. His appointment will be for a period of five years until October 3, 2023, subject to regulatory and other approvals. 

The other terms and conditions of his appointment, such as remuneration, would remain unchanged.  

Kochhar was not alone leaving ICICI Bank, separately, due to health reasons  MD Mallya, Independent Director, also resigned from the Board and the same was accepted.

ICICI Bank was the top gainer among the blue chips on both the key indices during the afternoon trade.

The bank is currently tackling a controversy involving Kochhar and a defaulter Videocon. A whistleblower alleged wrongdoing by CEO & MD Chanda Kochhar in regards to loans given to Videocon in which her husband Deepak Kochhar's name cropped up.