Sebi weighs forensic probe of ICICI Bank books, disclosures
Markets watchdog Sebi (Securities and Exchange Board of India) is mulling getting a forensic examination done on financial statements and disclosures made by ICICI Bank in last few years amid a controversy over alleged conflict of interest involving the lender’s CEO Chanda Kochhar and her husband.
According to top officials, the capital markets regulator will also consult the Reserve Bank of India (RBI) on the matter to avoid any intra-regulatory jurisdiction issues.
The forensic examination will focus on various disclosures made by the top private sector bank over the last few years, visa-vis the clarifications submitted by ICICI Bank to the stock exchanges in reply to queries made in the backdrop of a controversy regarding certain loans extended as part of a consortium to Videocon.
Officials said the examination will also cover the disclosures made at the time of Kochhar being appointed as CEO and managing director of the bank for the first time in 2009.
If required, Sebi will also seek details from the bank regarding various business dealings involving its top officials including Kochhar to look into alleged conflict of interest. Sebi has been looking into the matter for any possible disclosure and corporate governance-related lapses at ICICI Bank, but has not come across any concrete proof so far, the officials said.
A probe by RBI in 2016 also did not find any ‘quid pro quo’ vis-avis ICICI Bank with regard to the loan extended to Videocon by the consortium which had the private sector lender as ‘a small member’, they added.
ICICI Bank landed in the controversy following allegations about a ₹3,250 crore loan to Videocon Group, whose chairman Venugopal Dhoot has been accused of having business dealings with NuPower Renewables, operated by Chanda Kochhar’s husband Deepak Kochhar.
Besides, questions have been raised about Avista Advisory, run by Chanda’s brother-in-law Rajiv Kochhar, having advised some clients of ICICI Bank.
The bank however has denied all these allegations and its board has strongly defended the chief executive saying it has full faith and confidence in Kochhar.
Tata Motors saw its market share in commercial vehicles (CV) segment in the domestic market inch closer to 44% in 2017-18 riding on its turnaround strategy which aims at regaining lost ground to rivals.
According to Society of Indian Automobile manufacturers (SIAM) data, Tata Motors sold a total of 3,76,456 units of CVs in 2017-18 as against 3,05,620 units in 2016-17, a growth of 23.17%. The overall industry CV sales in 2017-18 were at 8,56,453 units in 2017-18 as against 7,14,082 units in 2016-17.
In terms of market share, Tata Motors increased it to 43.95% in FY18 from 42.79% in FY17.
Last August, while addressing shareholders, Tata Motors chairman N Chandrasekaran expressed concern over the company’s falling CV market share from a high of nearly 60% five years back and emphasised on the turnaround plan for its domestic business with a special focus on the ailing commercial vehicles business.
“FY18 has been landmark year for the CV business of Tata Motors. Reviving the domestic CV business was one of the key focus areas in the company’s turnaround strategy. We are delighted that we have gained good momentum and shown growth on the back of strong product portfolio across segments and intense customer engagement,” Tata Motors president (commercial vehicles business) Girish Wagh told PTI.
The execution of sales enhancement, rigorous cost reduction and timely product launches, delivered quick results on CV volumes, market share grew and bottom-line improved during the year, he added. “Besides significant ramp-up of production, structural de-bottlenecking of the supply chain and rationalisation of strategic supplier base were also undertaken as major projects,” Wagh said.
NEW DELHI: NEW DELHI: