ICICI Bank CEO Chanda Kochhar is facing allegations of conflict of interest in the Videocon loan case With respect to reports that ICICI Bank was under the scanner of the US markets regulator, the third-biggest lender by assets has said that it has not received any such official communication from the Securities and Exchange Commission (SEC).
Stock exchange BSE had earlier on Monday sought clarification from ICICI Bank on a report that suggested that the bank and its CEO and managing director Chanda Kochhar were under the lens of the US stock markets regulator.
The statement from ICICI Bank comes at a time Chanda Kochhar is facing allegations of conflict of interest in the Rs 3,250-crore Videocon loan case."As a large and internationally active bank with operations and listing of its equity and debt instruments in multiple jurisdictions, the Bank is regularly engaged with regulators, including the US SEC, on a range of matters," ICICI Bank said in a regulatory filing late on Monday.
ICICI Bank also said it has not received "any communication from the US SEC in relation to the allegations in respect of the Managing Director CEO of the Bank"."We wish to inform you that with reference to the specific article enclosed, there is no specific communication received from SEC up to this date," the bank said in a separate filing.Videocon's Venugopal Dhoot had an investment in NuPower Renewables founded by Chanda Kochhar's husband, Deepak Kochhar.
Media reports had claimed in March that Chanda Kochhar had approved a loan in 2012 to the Videocon Group in return for a favour received by NuPower Renewables.
The bank rejected the accusations of nepotism in March and said the board had "full confidence and reposes full faith" in the managing director.Interim Finance Minister Piyush Goyal had last week said there was no cause for concern for stakeholders while addressing allegations of mismanagement at ICICI Bank.
"ICICI Bank is a good bank.
It has very robust processes and there is no cause for concern for any of the stakeholders of ICICI Bank," he had said.He had also said the bank's internal and external inquiry committees would look into the allegations.The bank, on May 30, announced that its Board has decided to institute a "comprehensive enquiry" to look into an anonymous whistleblower's complaint alleging that Chanda Kochhar had not adhered to provisions relating to "code of conduct" of the bank.(ICICI Bank To Probe Allegations Against CEO Chanda Kochhar)Besides, the bank had said in an earlier regulatory filing that the scope of enquiry would be comprehensive and include all relevant matters arising out of and in the course of examination of the facts and wherever warranted, "use of forensic/email reviews and recordal of statement of relevant personnel, etc."The enquiry would also cover all connected matters in the course of the investigation to bring the matter to a final close.ICICI Bank shares rose nearly 1 per cent on Tuesday.
At 11:37 am, ICICI Bank shares were trading 0.1 per cent higher at Rs 287.10 apiece on the BSE, whose benchmark index Sensex was up 148 points or 0.4 per cent.