ICICI to probe charges against CEO Kochhar Govt unlikely to interfere in dispute
Investigation headed by a “credible person” will look at whistleblower allegations
MUMBAI: ICICI Bank Ltd on Wednesday said it will institute a fresh enquiry into an alleged nexus between the husband of chief executive Chanda Kochhar and Videocon Group chairman Venugopal Dhoot over a loan extended by the bank to the conglomerate.
The bank’s board, following a meeting on May 29, decided that the probe will be headed by an independent and credible person and will examine the charges made by an anonymous whistleblower that came to light after the bank’s May 7 board meeting.
The investigation will verify charges of impropriety, if any, in the lending decisions of the bank and Kochhar as alleged by the whistleblower. ICICI Bank’s decision to institute a fresh enquiry comes after the board met some investors on Tuesday to allay their concerns.
The probe will specifically look at allegations that Kochhar breached the bank’s “code of conduct”, violated regulations on “conflict of interest” and favoured certain borrowers, the bank said in an exchange filing.
On Tuesday, at a conference on financial services in Mumbai, the bank’s board met investors including APG Asset Management, Marshall Wace Asia Ltd, Geosphere Capital Management, Amansa Capital, Fidelity International Investment Management and Morgan Stanley Asset Management to address their concerns.
On April 12,
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first The investigation will examine an anonymous whistleblower’s complaint alleging breach of regulations and code of conduct and quid pro quo by Chanda Kochhar while disbursing loans The enquiry will cover all connected matters in order to bring the matter to a close Bank will help the enquiry team with forensics/email reviews and records of statements by relevant people Probe will look at disclosures made to the public about the bank’s dealings under Kochhar
The bank’s board met some key shareholders on Tuesday to allay their concerns about the Videocon loan controversy
The bank board has mandated its audit committee to appoint an independent and credible person to head the enquiry
Kochhar faces a conflict-of-interest allegation for granting a crore loan to Videocon group companies in 2012 as her husband had business dealings with the Venugopal Dhoot-led conglomerate
reported that ICICI Bank’s board was preparing a plan that includes more public disclosures related to conflict-of-interest allegations against Kochhar to restore shareholders’ confidence in the bank.
On Wednesday, the bank said the scope of the fresh enquiry will include all relevant matters arising out of the whistleblower’s allegations. During the course of the examination, the bank will help the enquiry team with forensics/email reviews and records of statements of relevant personnel and so on, if required.
“The enquiry would also cover all connected matters in the course of the investigation to bring the matter to a final close,” the bank said in the filing.
On March 28, ICICI Bank’s board had issued a statement reposing its confidence in the corporate governance of the lender and the integrity of Kochhar.
The board said it was aware of a 2016 Reserve Bank of India (RBI) probe on this issue and considered that information before giving Kochhar a clean chit.
RBI had initiated the probe after another whistleblower alleged conflict of interest, said a person directly aware of the bank’s board’s decisions.
Kochhar has been in the eye of a storm over granting a ₹3,250 crore loan to Videocon group companies in 2012 as part of a consortium, as her husband had business dealings with the Dhoot-led conglomerate.
In its probe, the Reserve Bank had found no evidence of reciprocal benefit, stating the allegation “could not be conclusively established”. NEW DELHI: The government is expected to continue with its present stance and follow an approach of non-interference in the ICICI Bank board at a time the bank’s CEO Chanda Kochhar is facing allegations of misconduct and conflict of interest over loans given to Videocon group.
The government nominee did not attend the board meeting that took the decision to constitute an independent inquiry to look into the allegations against Chanda Kochar, said a person familiar with the development.
The government has one nominee on ICICI Bank’s board—lok Ranjan—a joint secretary in the department of personnel and training.