In response to the allegations regarding sanctioning of the Rs 3,250 crore loans to the Videocon Group, ICICI Bank backed Chanda Kochhar by saying that the loans were sanctioned to the Videocon in 2012 when the current MD and CEO was not chaired by Chanda Kochhar.
ICICI board said that no individual has the right to influence credit decision at the bank, irrespective of his or her position.
Clarifying the question raised against the bank, the board asked the people to not go with the flow of the rumours against the bank and its top management.
The matter came into limelight when one on the Videocon investor Arvind Gupta accused The MD and CEO of the ICICI bank Chanda Kochhar for approving the loan of a debt-ridden Videocon Group both in India and abroad.
Gupta continued with the allegations against MD’s and her husband Deepak Kochhar. He said that Chanda Kochhar’s husband gets personal benefits from the loan worth Rs 3,250 crore for all the private entities of the Videocon Industries Limited.
Gupta claims that the Videocon Group owner Venugopal Dhoot have only 2.32% share in the company with an investment of Rs 64 crore while Deepak Kochhar acquired 92.67% share with only about Rs1.89 crore investment.
However, cutting down all his allegations, ICICI bank said that the investors of the NuPower Renewables are not the borrowers of the ICICI bank.
They said, “There have been some malicious and unfounded rumours in the past few days casting insinuations on ICICI Bank and its MD and CEO. The board of ICICI Bank today reviewed the internal processes of bank and also details of the exposure to the Videocon Group. The board has noted that the bank has a standardized credit approval process where multiple departments are involved in providing credit risk rating, doing credit appraisals, credit approvals and monitoring the proposals”.