ICICI Bank’s board has decided to set up an inquiry committee, headed by an independent person, to probe an anonymous whistle-blower’s complaint against managing director and chief executive officer Chanda Kochhar. The complaint includes allegations of violation of the bank’s code of conduct and of quid pro quo in dealing with certain borrowers.
The move comes just days after the capital markets regulator issued a show cause notice to the bank for the alleged violations of disclosure requirements in the case involving the Videocon group and NuPower Renewables — a company founded and run by Ms. Kochhar’s husband Deepak Kochhar.
“The scope of inquiry would be comprehensive and include all relevant matters arising out of and in the course of the examination of the facts and wherever warranted, use of forensic/email reviews and recordal of statements of relevant personnel etc. The inquiry would also cover all connected matters in the course of the investigation to bring the matter to a final close,” the bank said in an exchange filing. The board has mandated its audit committee to appoint the head of the inquiry panel and outline the terms of reference and the period which will be covered by the probe.
The whistle-blower has alleged that Ms. Kochhar had not adhered to provisions of the bank’s code of conduct and legal and regulatory norms relating to conflict of interest over a period of time.
In March, the Central Bureau of Investigation had initiated a preliminary inquiry to look into the alleged nexus between Videocon group and Mr. Kochhar. The transaction was first highlighted by a whistle-blower, Arvind Gupta, in 2016.
Mr. Gupta wrote to the Prime Minister’s Office, Reserve Bank of India and other authorities seeking a probe.
The largest private sector lender had earlier said its exposure to Videocon group is ₹3250 crore which is less than 10% of the total loans given by a consortium of 20 banks in April 2012.
Following the allegations, the board had conducted an enquiry of the internal processes for credit approval and found them robust. The ICICI Bank board also reposed full faith and confidence in its MD & CEO.
