COMMENT - ICICI Bank: A board that failed
Market regulatory Sebi has served a notice on ICICI Bank CEO and MD Chanda Kochhar on dealings of the bank with Videocon Group and Nupower, an entity in which her husband Deepak Kochhar has economic interests, the private sector lender said today. Appropriate response would be submitted to the Sebi, the country's largest private bank said in a stock exchange filing.
The CBI has launched a preliminary investigation into Rs 3,250 crore loan ICICI Bank had extended to Videocon in 2012 and the possible role of Kochhar's husband -- Deepak Kochhar.
Reports have alleged that Videocon chairman Venugopal Dhoot invested Rs 64 crore in Nu Power Renewables, a firm owned by Deepak Kochhar after Videocon secured a loan from a consortium of banks, including ICICI.
ICICI has denied any wrongdoing in the loan, saying it was part of a consortium of lenders that extended the facility to Videocon.
"The MD & CEO and the Bank received a Notice from SEBI on May 24, 2018 ... requiring responses on matters relating to alleged non-compliance with certain provisions of the erstwhile Listing Agreement and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015," the bank said in the filing.
The notice, it further said has been issued based on information furnished by the Bank/its MD & CEO to diverse queries made by Sebi concerning dealings between the bank and Videocon Group and certain dealings allegedly between Videocon Group and Nupower, an entity in which Deepak Kochhar spouse of MD& CEO has economic interests.
"Appropriate responses would be submitted to Sebi by the bank in accordance with regulation," ICICI Bank added .
Last month, ICICI Bank Chairman M K Sharma had said the board has full confidence in Chanda Kochhar and ruled out any quid pro quo as alleged with regard to certain loan given to Videocon group.
Earlier, the bank had clarified that none of investors of NuPower Renewables is a borrower of ICICI Bank.