Story of the day - Chanda Kochar on leave

An evolving news story being followed closely on Moneycontrol has revolved around ICICI Bank, its MD and CEO Ms Chanda Kochhar, her husband Deepak Kochhar, some of their relatives, Venugopal Dhoot of the Videocon Group and the CBI.

As you already know, The Indian Express on 29th of March broke a story alleging Quid Pro Quo dealings between the issuance of loans of upto 3250 crore rupees to the Venugopal Dhoot led company Videocon Group and Ms Chanda Kochhar's husband Deepak's company NuPower Renewables.

The latest development in the story, till a few hours ago was that the ICICI Bank CEO Chanda Kochhar had been asked to proceed on an indefinite leave from the company that she has headed for almost a decade. A report in Mint stated that the leave would last till, and we quote, “an independent enquiry announced by the lender’s board to probe alleged cases of impropriety is concluded." Unquote. This information, came from someone with direct knowledge of the board’s decision.

Since March, the din of speculation around what could or could not have transpired before and during the issuance of loans to Videocon and NuPower Renewables has only grown louder.

Whether this latest decision was in response to the increasing media scrutiny of the bank's inner workings under Ms Kochhar's leadership or whether as the reports seem to suggest, Ms Kochhar was advised to go on leave at the behest of a majority of the seven independent board directors, we are not sure about.

What is conclusive though is that an enquiry, likely to be headed by a retired judge of the Supreme Court, will begin next week and will be completed in two months.