India’s central bank has approved the appointment of Sandeep Bakshi as managing director and chief executive of the country’s biggest privately owned lender, ICICI Bank.

The Reserve Bank of India approved Bakshi’s appointment for a term of three years with effect from October 15, Press Trust of India reports.

ICICI’s share price gained nearly 2% in morning trade on Tuesday at the National Stock Exchange after the RBI approval.

Bakshi’s predecessor Chanda Kochhar was forced to quit after allegations of nepotism and conflict of interest, six months before her current tenure was to end. She now faces an inquiry.

After the resignation of Kochhar, the bank’s board had on October 4 put Bakshi in place as the new MD and CEO for five years. In June he was promoted to become whole-time director and chief operating officer.

Bakshi joined ICICI Bank in 1986 and has headed its insurance arm ICICI Prudential Life Insurance Company since 2010.