Legal activist Prashant Bhushan has reportedly written to the Reserve Bank of India (RBI), urging the regulator not to extend the tenure of ICICI Bank’s Managing Director and CEO, Sandeep Bakhshi, citing alleged regulatory and governance violations. The move introduces a fresh layer of scrutiny at a time when the bank is widely seen as one of the strongest performers in India’s private banking sector.
Under Bakhshi’s leadership, ICICI Bank has delivered a remarkable financial turnaround. The bank’s net profit has surged approximately 7.4 times, while its loan book has expanded nearly 2.8 times. Equally notable is the improvement in asset quality and profitability metrics, with net interest margins (NIM) rising from 3.33% to 4.32%. These gains have positioned ICICI Bank ahead of key rival HDFC Bank on several performance indicators in recent years.
Bhushan’s representation to the RBI underscores ongoing debates around corporate governance standards and regulatory oversight in India’s banking system. While the allegations he raises will require careful examination by the regulator, they come in contrast to the market’s largely positive assessment of Bakhshi’s tenure.
The development places the RBI in a delicate position of balancing concerns around governance with the track record of a CEO credited with steering one of India’s largest private lenders through a period of strong growth and stability. The outcome of this episode will be closely watched by investors, regulators, and the broader financial community.
