With ICICI Bank Ltd. embroiled in a controversy over alleged conflict of interest involving its Chief Executive Officer Chanda Kochhar, market regulator Securities and Exchange Board of India has begun looking into the matter for any possible disclosure and corporate governance-related lapses.
Besides, Videocon Industries Ltd. and its promoters have come under the regulator’s scanner as the matter relates to alleged “quid pro quo” involving loans to the company by a group of lenders, including ICICI Bank and some public sector banks.
SEBI has begun a preliminary enquiry into various disclosures made by the top private sector bank over the last few years while the stock exchanges may seek additional clarifications regarding recent reports in this regard that relate to dealings that took place way back in 2012, a senior official said.
ICICI Bank is India’s fourth most valued bank with a market capitalisation of about Rs 1.8 lakh crore and its shares are also part of the benchmark stock market index S&P BSE Sensex.
ICICI Bank’s board has reposed full faith in Kochhar, while sources close to them said that regulatory queries were satisfactorily answered in 2016.
“I would like to clearly state that we always satisfactorily reply to questions of regulators,” ICICI Bank Chairman MK Sharma said on Thursday but did not specifically name any regulator.
Sources, however, said that the RBI had sought clarification from the bank in 2016 on the issue to which the bank had given its response at that time.