ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • 2022 Hyundai Tucson launched in India - Check price, specifications and more
  • Covid-19 vaccine: Adults vaccinated with Covaxin, Covishield can take Corbevax precaution dose
  • Gold Prices Today: Yellow metal price subdued ahead US inflation data | Check rates in your city
  • Samsung Galaxy Unpacked 2022 Live Updates: Galaxy Z Fold 4, Z Flip 4, Watch 5 launch today - Check timings, live streaming detai
  • Bharti Airtel share price jumps over 2% on strong Q1 earnings; Brokerages recommend Buy - check price target
Read in App
Business News » India News

Chanda Kochhar may have to return over Rs 9-cr bonus to ICICI Bank: Sources

Former ICICI Bank chief Chanda Kochhar, who was terminated with retrospective effect Wednesday, may have to return over Rs 9 crore performance bonus received as the bank's executive head since 2009, sources said.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Chanda Kochhar may have to return over Rs 9-cr bonus to ICICI Bank: Sources
Former ICICI Bank chief Chanda Kochhar, who was terminated with retrospective effect Wednesday, may have to return over Rs 9 crore performance bonus. Image source: PTI

Former ICICI Bank chief Chanda Kochhar, who was terminated with retrospective effect Wednesday, may have to return over Rs 9 crore performance bonus received as the bank's executive head since 2009, sources said.

Besides, she will also have to forgo her unexercised stocks options, they said. 

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.

Sources divulge Thursday that performance bonus for the last two financial years has not been approved by the RBI, therefore that amount is not taken into account in Kochhar's total bonus payout.

They also said that bonuses of Axis Bank and Yes Bank chief executives and executive directors have not been approved by the central bank for the last two fiscals. 

As per the various annual reports of the bank, Kochhar was granted 94 lakh shares but it could not be verified that how much stock options she had exercised.

If Employee Stock Ownership Plan (ESOP) granted to Kochhar is taken into account, the total amount comes to about Rs 340 crore at the present market value.

However, the amount would be much less than ESOPs granted because she might have sold some shares in the last 9 years.

Following an independent enquiry panel led by Justice (Retd) B N Srikrishna, the board of the ICICI Bank 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".

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".

For the 9-year period, shareholders approved Rs 9.82 crore bonus payout to Kochhar. 

However, considering that the last two performance bonuses are yet to get regulatory approval from the RBI, the recovery amount would be less than what has been approved by the shareholders' Annual General Meeting.

Besides, experts also feel that there may be legal tangle involved in the revoking of the ESOPs and refund of the performance bonus.

The Srikrishna committee report concluded that there was 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.

Watch this Zee Business video here

On the development, Kochhar said she was "disappointed, hurt and shocked" by the bank's decision to treat her resignation as a "termination for cause" after an independent probe indicted her for violating regulations.

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 whistle blower 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.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
ICICI BankChanda Kochhar
Written By: PTI
Updated: Fri, Feb 01, 2019
06:02 am
PTI
RELATED NEWS
ICICI Bank, PNB hike external benchmark based lending rates ICICI Bank, PNB hike external benchmark based lending rates
Loans, EMIs to become expensive as THIS private bank hikes interest rate by 15bps ahead of RBI MPC meet Loans, EMIs to become expensive as THIS private bank hikes interest rate by 15bps ahead of RBI MPC meet
Sandeep Batra, ICICI Bank: Value of transactions by non-ICICI Bank customers on iMobile Pay grew by 35% Q-o-Q Sandeep Batra, ICICI Bank: Value of transactions by non-ICICI Bank customers on iMobile Pay grew by 35% Q-o-Q
Stocks to buy today: Dr Reddy’s, ICICI Bank, DMart, TVS Motor, and Tech Mahindra among list of 20 stocks for profitable trade on July 29 Stocks to buy today: Dr Reddy’s, ICICI Bank, DMart, TVS Motor, and Tech Mahindra among list of 20 stocks for profitable trade on July 29
ICICI Bank shares among top Nifty gainers, up over 2% post strong Q1 results – what should investors do? Brokerages recommend this ICICI Bank shares among top Nifty gainers, up over 2% post strong Q1 results – what should investors do? Brokerages recommend this

LATEST NEWS

Raksha Bandhan 2022 correct date, best time; Rakhi Shubh Muhurat in India - Know inauspicious Bhadra, what to avoid as per Hindu calendar

Go First launches Independence Day sale: Ticket price starts at Rs 1,508 - How to book and check routes

Maruti Suzuki Alto K10 2022 bookings open; Check token amount and how to book online

Raju Srivastav suffers heart attack at gym, admitted to AIIMS in Delhi

New Virus in China 2022: Langya ALERT! No vaccine, no treatment! LayV found in throat swab samples | All details here

Closing Bell: Sensex, Nifty50 conclude on mixed note – IT, FMCG, Realty drag market most

Bihar New Govt Portfolios: Who will get what in Nitish-Tejashwi cabinet? JDU, RJD, Congress, HAM - List

Why didn't BJP try to stop Nitish Kumar from leaving NDA?

Karuvannur Cooperative bank scam: ED conducts searches in Thrissur

Rakesh Jhunjhunwala stock: Tata Group company's share price hits new high after strong Q1 results – Brokerage recommend Buy, check price target

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV