ICICI chief gets 2-year extension, succession speculation deferred

MUMBAI: ICICI Bank's board choosing to seek a two-year term for CEO Sandeep Bakhshi instead of the usual three years has given rise to speculation that this may be his last term. However, the proposal has removed any overhang of uncertainty as his term extends until Oct 2028.

Addressing media, the bank's executive director Sandeep Batra said that the bank's board in its wisdom and in consultation with Bakhshi, opted for a two-year term.

"We have three years to go. So you know, on a lighter vein we hopefully address the speculation around Oct 2026 and I think it's too early to speculate about October 2028," Anindya Banerjee, the bank's CFO said in an analyst call.

Succession in a private bank has emerged a crucial issue in recent years the central bank has made it clear to banks that they need to submit a list of eligible candidates much before the incumbent retires to enable the central bank decide in time.

Analysts see the reappointment as a positive. "The board has reappointed Bakhshi as CEO till October 2028. This is a big positive as it removes a key overhang on the stock," said Nuvama in a research report after the results.

Bakhshi's term has so far been without any run-ins with the regulators. The recent RBI-directive to reclassify Rs 25,000 crore of loans is the only major compliance-related action by RBI However, the bank has said that the reclassification does not change the standard nature of the loans.

Addressing analysts on Friday, Bakhshi said "Maintaining high standards of governance, deepening coverage, and enhancing delivery capabilities with a focus on simplicity and operational resilience are key drivers for our risk-calibrated profitable growth."

"With the term extension, the bank is well-positioned to continue its journey of delivering best-in-class growth and profitability," said Motilal Oswal in a research report.

Bakhshi took charge on Oct 15, 2018, following Chanda Kochhar's exit. Bakhshi, who earlier headed the insurance arms of the bank and also was earlier part of the senior bank management and drove operational efficiency, business development, and project restructuring in the bank. Under his leadership, the bank price rose 5x, and market cap reached Rs 8.1 lakh crore.