Bakhshi has been the managing director and CEO of ICICI Prudential Life Insurance Company since August 1, 2010 and and was re-appointed from August 1, 2015.
Bakhshi will report to Chanda Kochhar, who will continue in her role as MD and CEO of ICICI Bank, the bank said after a lengthy board meeting on Monday. The letter alleges that Kochhar, as joint managing director of ICICI Bank in December 2008, was also a shareholder in NuPower.
Brokerages welcome the management revamp at ICICI Bank but await more clarity on a probe into nepotism allegations against CEO Chanda Kochhar and possible succession.
Bakhshi started his career with the ICICI group in 1986 and has looked after the group's corporate, retail lending and insurance businesses. A day before the report is published, the bank sends out a statement terming the charges against Kochhar as "malicious and unfounded rumours".
"In line with the highest levels of governance and corporate standards, Ms. Chanda Kochhar has made a decision to go on leave till the completion of the enquiry as announced on May 30, 2018", the bank said in a statement to exchanges.
Chanda Kochhar, the chief executive officer of India's second-biggest lender, has left the building, and her new deputy should waste no time in letting stakeholders know who the real boss is: It's him. The accusation was that the bank had sanctioned the loans because of the business relations between the Dhoots and Kochhar's husband Deepak.
This related to a Rs 3,250 crore loan extended by the bank to the Videocon Group in 2012. However, during the period of her leave, he will report to the board. This is a weak board as it should have asked her to go on leave, " Subramanian said.
Earlier on Monday, the Bombay Stock Exchange had askedICICI to respond to media reports that the bank was considering a top level reshuffle. Videocon's Venugopal Dhoot had an investment in NuPower Renewables founded by Mr Kochhar. The board didn't see any conflict of interest in Kochhar not recusing herself from the credit committee that had cleared the Videocon loan. It's unclear what led to this move, but questions are raised on the board's hasty decision to clear Kochhar of all charges without a probe.
Former Supreme Court Judge Justice BN Krishna will conduct the inquiry into allegations against Kochhar.