New Delhi, Mar 29: ICICI Bank on Wednesday gave a clean chit to its Managing Director and CEO Chanda Kochhar and dismissed the allegation of favouritism in lending loans to Videocon Industries. The bank said it has full faith and confidence in Chanda Kochhar, describing certain reports against her regarding credit disbursement to Videocon group as “malicious and unfounded rumours”.
There were reports alleging that Chanda Kochhar’s husband Deepak received investment in his company from Videocon as quid pro quo for loans from ICICI Bank. It was also reported that a complaint had been forwarded to Prime Minister Narendra Modi. The board reviewed the bank’s internal processes for credit approval and found them robust, the ICICI bank said in a regulatory filing.
“The board has come to the conclusion that there is no question of any quid pro quo/ nepotism/ conflict of interest as is being alleged in various rumours,” the private sector lender said. It also said that rumours are being spread to malign the bank and its top management. With regard to the exposure to the Videocon group, it said the bank’s current exposure is a part of the syndicated consortium arrangement.
“ICICI Bank was not the lead bank for this consortium and the bank only sanctioned its share of facilities aggregating approximately Rs 3,250 crore which was less than 10 per cent of the total consortium facility in April 2012,” it added.