Chanda Kochhar Pulls Out Of President Ram Nath Kovind's Event

ICICI Bank share price hits lowest since October tanks 6% as Videocon controversy draws police Sebi probe

Reports have alleged quid pro quo between Videocon Group and the bank's CEO Chanda Kochhar as well as her family members with respect to extending a loan worth Rs 3,250 crore, an issue that has snowballed into a controversy even as the lender has come out in defence of Kochhar.

A bank official said the board meeting was routine in nature and refused to divulge any details whether the conflict of interest issue would be discussed.

"The board had also reviewed the banks internal processes for credit approval and found them robust", the bank had said in a statement, adding that the bank's current exposure is a part of syndicated consortium arrangement.

Stocks of ICICI Bank dipped to a five month low or almost 6% on Monday after a CBI team launched a preliminary investigation in the case of loans disbursed to Videocon Group. The group had secured Rs 40,000 crore loan from a consortium of banks, led by SBI.

"Our transaction is very clear and I have not done anything wrong, and will not do anything wrong.We have not invested any money in any company floated by Deepak Kochhar".

The report by The Indian Express says that Videocon chairman Dhoot started a joint company, NuPower Renewables Pvt Ltd (NRPL), with Deepak Kochhar and two of the latter's relatives in Decembr, 2008.

NuPower then got a loan of Rs 64 crore in March 2010 from a company called Supreme Energy. Around 33.17 per cent is held by Pinnacle Energy, whose managing trustee is Deepak. In the plea, ICICI said the company failed to repay a loan of Rs 3.13 billion to the bank after the 500-Mw hydropower project, which was supposed to be commissioned in 2012, remained unfinished.

Last week Reserve Bank of India (RBI) slapped a fine of Rs 59 crore for failing to comply with regulations with regard to the selling of bonds in the held to maturity portfolio beyond the mandated limit of 5% of the previous year's outstanding. It also reduced its holding in Bank Of New York Mellon Corp (NYSE:BK) by 11,300 shares in the quarter, leaving it with 39,191 shares, and cut its stake in Johnson And Johnson (NYSE:JNJ). ICICI Bank sanctioned its share of facilities aggregating approximately Rs 3250 crore which was less than 10% of the total consortium facility in April 2012. "The Videocon group account has been classified as an NPA during 2017".

The bank will redeem 350, comprising of 0.001 per cent unlisted redeemable non-cumulative, preference shares of Rs 1 crore each allotted on April 21, 1998 with a tenure of 20 years are due for redemption on April 20, 2018.

At the end of the day, ICICI Bank's stock on BSE closed 5.93% down at Rs 261.90 and 5.73% down at Rs 262.40 on NSE.

The stock is now trading at Rs262 down by Rs16.4 or 5.89% from its previous closing of Rs278.40 on the BSE. The hedge fund held 402,613 shares of the commercial banks company at the end of 2017Q4, valued at $3.92 million, down from 561,193 at the end of the previous reported quarter.

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