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ICICI Bank surges 2% as board meet on Kochhar’s fate looms

NEW DELHI: ICICI Bank jumped 2 per cent early Tuesday amid reports that the board of the private lender is divided on whether CEO Chanda Kochhar should be asked to step down as government agencies probe charges of nepotism.

The investigation is in connection with loans made to the Videocon group.

Following the news, the stock rose 1.72 per cent to hit a high of Rs 285.30 on the BSE.

People with knowledge of the matter told TOI that select outside directors are opposed to Kochhar continuing in her role. The board of Indias second-largest private bank may meet as early as this week to consider its next course of action, those familiar with the matter said.

Kochhars current tenure as CEO is set to end on March 31, 2019, TOI reported.

The investigation into allegations that ICICI Bank extended a loan with a potential conflict of interest raises questions over the lenders governance and creates reputational risks, global rating agency Fitch said in a note on Monday.

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