ICICI Bank, the country’s largest private sector bank, on Wednesday sought to put to rest rumours that its CEO and MD Chanda Kochhar allegedly favoured Videocon Group in its lending practices. Terming the rumours “malicious and unfounded”, ICICI Bank said: “ICICI Bank Board reviews the Bank’s internal processes for credit approval and finds them robust. The Board also expresses and reposes full faith and confidence in its MD & CEO, Ms. Chanda Kochhar.” ICICI Bank in its statement also said that “similar rumours had first surfaced in the mid-2016 and had been appropriately responded to”.
The statement came after multiple reports had last week alluded to alleged conflict of interest in ICICI Bank’s lending to Videocon. Explaining its current exposure to the Videocon group, ICICI Bank said it had sanctioned a Rs. 3,250 crore to Videocon as part of a consortium of lenders. ICICI Bank said the group of banks was not led by it.
ICICI Bank’s board reviewed the bank’s internal processes on Wednesday and noted that the bank has “a well-structured and standardised credit approval process”. “No individual employee, whatever may be his or her position, has the ability to influence the credit decision at the Bank,” ICICI Bank said.
Here’s the full text of ICICI Bank’s statement:
ICICI Bank Board reviews the Bank’s internal processes for credit approval and finds them robust. The Board also expresses and reposes full faith and confidence in its MD & CEO, Ms. Chanda Kochhar
There have been some malicious and unfounded rumours in the past few days casting insinuations on ICICI Bank Ltd. and its MD & CEO. Similar rumours had first surfaced in the mid-2016 and had been appropriately responded to. Nevertheless these have resurfaced in the recent past to malign the Bank.
In that context, the Board of ICICI Bank today reviewed the internal processes of the Bank and also the details of the exposure to the Videocon group.