Embattled ICICI board plans fresh outreach
ON 28 MARCH, THE ICICI BANK BOARD ISSUED A STATEMENT REPOSING ITS CONFIDENCE IN THE CORPORATE GOVERNANCE OF THE LENDER AND THE INTEGRITY OF KOCHHAR.
MUMBAI: ICICI Bank Ltd’s board is preparing a plan that includes more public disclosures related to conflict-of-interest allegations against its managing director Chanda Kochhar with the objective of allaying the growing concerns of its shareholders and restoring their confidence in the bank.
The board plans to look afresh at disclosures that the bank has already made after its initial statement failed to assuage shareholders’ concerns, a person directly aware of the development said, without giving more details.
The plan appears to be an attempt to respond to shareholders who are demanding that the board, led by chairman M.K. Sharma, explain why it has given Kochhar a clean chit without first ordering an independent probe.
On 28 March, the ICICI Bank board issued a statement reposing its confidence in the corporate governance of the lender and the integrity of Kochhar.
ICICI’s board was aware of a 2016 Reserve Bank of India (RBI) probe on this issue and considered that information before giving Kocchar a clean chit, added this person, speaking on condition of anonymity. RBI had initiated the probe after a whistleblower alleged conflict of inter- est, said this person.
The board’s efforts come at a time when markets regulator Securities and Exchange Board of India (Sebi) has begun a preliminary enquiry into the alleged governance lapses at the bank.
Sebi is looking at three angles: whether there were any disclosure lapses on the bank’s part; the board’s role in decisions regarding loans given to the Videocon group; and independent directors’ view on the alleged conflict of interest, said another person aware of the matter, requesting anonymity.
Kochhar has been in the eye of a storm over the granting of a Rs3,250 crore loan to Videocon group companies because her husband had business dealings with the Venugopal Dhoot-led conglomerate. Sebi has so far sent routine queries to the bank and no specific queries have been sent on the above mentioned lines, said a third person familiar with the matter, also on condition of anonymity. Emails sent to spokespersons for Sebi and ICICI Bank were not answered till press time.