India’s second-largest private-sector lender had sought a two-year extension for Bakhshi in January this year, contrary to the norm of a three-year term. This was part of the bank’s succession planning.
Bakhshi took charge of the bank after the unceremonious exit of the bank’s former CEO, Chanda Kochchar, in 2018.
In the initial part of his tenure, Bakhshi initiated the cleanup at the bank.
Under Bakhshi, ICICI Bank has given the sector leader HDFC Bank a run for the money on growth parameters. Under Bakhshi, ICICI Bank’s annual net profit has jumped 7.4 times, while its loan book has grown 2.8 times. The bank’s quarterly net interest margin has also increased from 3.33% to 4.32%.
Although rival HDFC Bank saw its loan book surge by 5.1 times, that is largely due to a merger with erstwhile parent HDFC Ltd. Its annual profit has grown by 3.5 times, half the growth seen by ICICI Bank.
The five reasons that Bhushan highlighted in his representation include:
1. Penalties imposed by the RBI under sections 46 & 47A of the Banking Regulation Act, 1949, on the ICICI Bank.
The eight penalties mentioned in this include a ₹12 crore penalty for sanctioning loans to entities connected with directors, failure to report frauds within prescribed timelines, and engagement in the sale of non-financial products – an impermissible activity.
2. Financial and other frauds revealed during Bakhshi’s Tenure
In this, Bhushan highlights 23 instances of fraud since 2024. Of these 22 frauds involved monetary loss worth a combined ₹245 crore at various branches of ICICI Bank, while one pertained to a data breach.
These frauds make up 0.25% of the bank’s net profit over the last two years, and Bakhshi isn’t individually accused in any of them.
3. Prosecution Sanction Proposal and Findings of Labour Authorities
The bank let go of 782 employees in 6 months during 2024, as they ‘stopped reporting’ to work. These employees made up a 0.39% of the bank’s total staff then.
4. Mass Terminations, Employee Harassment, and Suicides
The letter to RBI highlights four cases of suicide by the bank’s employees in the recent past, citing work-related issues. Work-related stress has been on the rise across sectors.
5. Non-Compliance with the GST framework leads to penalties and liabilities
