Shares of private lender ICICI Bank dropped over a percent in early trade on December 19, a day post the Reserve Bank of India (RBI) defended Chanda Kochhar’s sacking from the bank.
RBI has informed the Bombay High Court on December 18 that its decision to approve the termination of the appointment of ICICI Bank’s Chanda Kochhar as MD and CEO was fair and not arbitrary.
The central bank has filed an affidavit as revert to a petition filed by Kochhar last month, challenging her dismissal as the chief executive and managing director of ICICI Bank months after she voluntarily decided to quit the private sector lender.
The bank, while ending her employment, also denied her any remuneration and rejected the bonuses and stock options given to her from April 2009 to March 2018.
She was accused of supporting in the grant of out-of-turn loans of Rs 3,250 crore to Videocon Group, which allegedly gave benefits to her husband, Deepak Kochhar.
Chanda Kochhar’s lawyers Vikram Nankarni and Sujay Kantawalla, however, argued her termination and said that it came months after the bank had already received her voluntary resignation on October 5, 2018, and therefore the sacking was illegal.
The RBI in its affidavit has informed that there was no violation of Kochchar’s fundamental rights, and its decision to approve the termination of her services was irrespective of any “malafides or arbitrariness”.