ICICI board meet: All eyes on Kochhar
MUMBAI: ICICI Bank Ltd’s shareholders expect its board to clarify on conflict-of-interest allegations raised against its chief executive Chanda Kochhar at its Monday meeting to approve the lender’s March quarter earnings, executives from three top asset management firms said.
“We want clarity on the issue of conflict of interest and a succession plan from the board,” said one of them, who heads a mutual fund house, and did not wish to be identified given the sensitivity of the matter.
“We want clarity on the kind of disclosures made by the bank CEO to the board,” said the second of the three people cited earlier, also requesting anonymity.
In early March, the Central Bureau of Investigation registered a preliminary enquiry against Chanda Kochhar’s husband Deepak and businessman Venugopal Dhoot to verify alleged conflict of interest in a ₹3,250 crore loan made by ICICI Bank to Dhoot’s Videocon group.
ICICI Bank had extended the loan as part of a ₹40,000 crore loan by a consortium of 20 banks in 2012.
Separately, the Securities and Exchange Board of India (Sebi) has also asked ICICI Bank to clarify on reports of this alleged corporate governance breach.
The income tax department had in April separately issued notices to Deepak Kochhar to look into the flow of about ₹325 crore from two Mauritius-based firms to Nupower Renewables Pvt. Ltd, which he once co-owned with Dhoot.
“The bank’s board meeting on May 7, will consider the approval of the audited annual accounts for the financial year ended March 31, 2018 and discuss other routine matters,” a spokesperson for ICICI Bank said, adding that the allegations are baseless.