ICICI Bank gained 4 per cent to Rs 297 levels on the NSE on Friday, a day after the bank decided to conduct an independent enquiry into allegations of breach of code of conduct and conflict of interest against its managing director, Chanda Kochhar.
The enquiry will be headed by an “independent and credible person”, the bank said in a filing to the stock exchanges.
The allegations of wrongdoing pertain to loans extended by ICICI Bank to the Videocon group, which had business relations with NuPower Renewables, owned by Chanda Kochhar’s husband Deepak Kochhar.
"According to reports, Chanda Kochhar has been asked to go on an indefinate leave. This gives room for a fair and just enquiry into the allegations. That apart, the process of finding a replacement will be swift. All this was an overhang on the stock till now. At the current levels, the stock looks attractive valuation-wise and is a good buy from a long-term perspective," says A K Prabhakar, head of research at IDBI Capital.
First Published: Fri, June 01 2018. 09:40 IST