ICICI Bank Backs CEO Chanda Kochar , Says No Employee Has Ability To Influence Credit Decicion

ICICI Bank, the country's largest private sector bank, on Wednesday said that its CEO and MD Chanda Kochhar allegedly favoured Videocon Group in its lending practices. Terming the news reports "malicious and unfounded", ICICI Bank said: "ICICI Bank Board reviews the Bank's internal processes for credit approval and finds them robust. The Board also expresses and reposes full faith and confidence in its MD & CEO, Ms. Chanda Kochhar." "Similar rumours had first surfaced in the mid-2016 and had been appropriately responded to", the Bank added.

ICICI Bank board also reviewed the bank's internal processes for credit approval and found them robust, the private sector lender said in a regulatory filing.

The statement came after multiple reports had last week alluded to alleged conflict of interest in ICICI Bank's lending to Videocon. Explaining its current exposure to the Videocon group, ICICI Bank said it had sanctioned a Rs 3,250 crore to Videocon as part of a consortium of lenders. ICICI Bank said the group of banks was not led by it.

Indian Express reported that, in December 2008, Venugopal Dhoot of the Videocon Group set up a company with Deepak Kochhar, husband of ICICI Bank MD and CEO Chanda Kochhar, and two of her relatives; then gave a Rs 64-crore loan to this company through a fully owned entity before he transferred the latter’s ownership to a trust headed by Deepak Kochhar for just Rs 9 lakh.

Certain reports have appeared on a website alleging involvement of Kochhar and her family members in a loan provided to Videocon group on quid pro quo basis. It was also pointed out that a complaint had been forwarded to Prime Minister Narendra Modi and others for necessary action against Kochhar.

"The board has come to the conclusion that there is no question of any quid pro quo/ nepotism/ conflict of interest as is being alleged in various rumours.

"The Board has full confidence and reposes full faith in the Bank's MD and CEO Ms. Chanda Kochhar," the bank said.

It also said that rumours are being spread to malign the bank and its top management.

With regard to the exposure to the Videocon group, it said the bank's current exposure is a part of the syndicated consortium arrangement.

"ICICI Bank was not the lead bank for this consortium and the bank only sanctioned its share of facilities aggregating approximately Rs 3,250 crore which was less than 10 per cent of the total consortium facility in April 2012," it added.

(With PTI Inputs)

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ICICI Bank 's Board Reposes Faith On CEO Chanda Kochar, Refutes Allegation On Videocon Exposure

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