ICICI Bank share price ends flat as investors welcome management revamp

ICICI Bank share price ended flat after falling over 1 per cent as investors were calm following the recent change in top management. The stock slipped as much as 1.3 per cent to Rs 288.50, but ended flat at Rs 292 on the BSE. 

Brokerages welcomed the management revamp at ICICI Bank but await more clarity on a probe into nepotism allegations against CEO Chanda Kochhar and possible succession.

The Mumbai-based lender on Monday named group veteran Sandeep Bakhshi as interim head, and said Kochhar would go on leave till the completion of a probe into alleged conflict of interest over loans given to Videocon whose founders had an interest in a renewable company founded by her husband.

Brokerage Kotak Securities sees the development as an important step to address a key concern that has been a headwind to the stock in recent months.

"While Bakhshi’s appointment is “a step better”, still too many questions are left unanswered," said a fund manager to Reuters who holds ICICI shares.

WATCH ZEE BUSINESS VIDEO HERE

Morgan Stanley believes Bakhshi will likely be a front-runner for the CEO job as Kochhar’s current term ends in early 2019, although board could also look for external candidates.

Despite being inexpensive, ICICI stock could continue to lag peers in the near term given the uncertainty around top management, added Morgan Stanley.