ICICI shareholders lose over ₹19,000 cr in 4 trading sessions
Bank Ltd has shed over ₹19,066.46 crore in market value in the four trading sessions beginning Monday.
The stock closed 2.8% lower at ₹271.15 on Thursday, nearing a three-month low, and fell 2.8% from its previous close. It has lost over 11% in the last four sessions and nearly 13% year to date.
The Central Bureau of Investigation (CBI) registered a preliminary enquiry against ICICI Bank CEO Chanda Kochhar’s husband Deepak and businessman Venugopal Dhoot to investigate 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.
Securities and Exchange Board of India (Sebi) has also asked ICICI Bank to clarify on reports of alleged corporate governance breach. The tax department in April issued notices to Deepak Kochhar to look into the flow of about ₹325 crore from two Mauritius-based firms to NuPower Renewables, which he once co-owned with Dhoot.
Following this, in May, the ICICI Bank board instituted a fresh inquiry into the allegations and asked its chief executive officer (CEO) Kocchar to go on indefinite leave till probe is over. The bank announced retired supreme court judge BN Srikrishna would head the inquiry and appointed Sandeep Bakhshi as the chief operating officer for a five-year term.
Goldman Sachs has removed the stock from its conviction list on continued uncertainty around its CEO and outcome of visibility around succession planning for the CEO role.