New Delhi:ICICI Bank said on Wednesday that it would institute an independent probe headed by a credible entity to look into allegations that its MD and CEO ChandaKochhar had breached its code of conduct.The issue relates to the lender extending loans to Videocon Group, which had business ties with NuPower Renewables, a firm promoted by Kochhar’s husband DeepakKochhar.

The bank, through an update to the exchanges, said its board has asked its audit committee to “appoint the head of enquiry, determine the terms of reference and the period covered”. ICICI’s audit panel will help the head of probe with independent legal and other professional support. On May 24, Sebi sent a notice to the bank and ChandaKochhar in this regard. The markets regulator thinks some matters relating to the dealings between the bank’s MD, her husband and Videocon were not disclosed to the board, and so the enquiries.

It is alleged that VenugopalDhoot, chairman of Videocon Group, had invested Rs 64 crore in Deepak Kochhar’sNuPower Renewables. Prior to that, Videocon had got a Rs 3,240-crore loan from ICICI Bank in 2012. The loan was part of a larger one that the diversified group got from a consortium of banks, including ICICI Bank. After the news made headlines, the CBI also launched a preliminary investigation into the whole affair.

In its release to the exchanges, ICICI Bank said that there were allegations that its MD had “not adhered to provisions relating to code of conduct...and legal and regulatory provisions relating to conflict of interest..., as also alleging quid pro quo in the course of her work in dealing with certain customers/borrowers of bank”.