ICICI Bank board meet today, Chanda Kochhar issue may come up

Gross bad loans as a percentage of total loans was 8.84% at the end of March compared with 7.82% at the end of the previous quarter and 7.89% a year earlier

Gross bad loans as a percentage of total loans was 8.84% at the end of March compared with 7.82% at the end of the previous quarter and 7.89% a year earlier

According to bank's MD and CEO Chanda Kochhar the new policy entails growth of retail loan portfolio, reconciliation and resolution of the stressed assets. The bank Board that met on Monday to finalise its annual results also did not discuss the Videocon loan controversy surrounding its managing director and chief executive officer Chanda Kochhar.

CBI created flutter in the dovecotes when it started a preliminary enquiry into an alleged nexus between Videocon chairman Venugopal Dhoot and Chanda Kochhar's husband, a preliminary enquiry is the first step to assess allegations of wrongdoing.

ICICI Bank, the country's largest private sector lender, reported 49% decline in net profit to ₹1,020 crore for the quarter ended March 31, 2018 as fresh slippages during the period zoomed.

A pedestrian walks past a logo of ICICI Bank at its headquarters in Mumbai January 30, 2015.

The Reserve Bank of India (RBI) in February did away with half a dozen loan restructuring schemes in a surprise move to hasten a clean-up of near-record levels of soured loans and tightened some other rules, which has led to banks disclosing more bad loans in the March quarter. Kochhar took a defiant stance on the conflict of interest issue and refused to comment despite repeated requests, saying the board had already clarified the matter.

On a standalone basis, the bank, now grappling with allegations of conflicts of interest involving chief executive Chanda Kochhar, saw its net profit halving to Rs 1,020 crore.

LEADING OFF: Pujols at 2999, Dodgers-Padres in Mexico
The last time the Dodgers had a no-hitter was June 18, 2014 when Clayton Kershaw tossed one against the Rockies. It's the 23rd no-hitter in Dodgers franchise history, which is the highest team total by a significant margin.

The central bank had closed the probe - after ICICI Bank had submitted a detailed response to its queries - as it was unable to find conclusive evidence of any conflict of interest, the industry sources who did not wish to be named said.

The board of ICICI Bank, which is also listed in NY, has backed Kochhar and denied any wrongdoing. "Going forward, ICICI Bank's strategy will be anchored around three key anchors: Preserve, Change, Grow", Kochhar said. She sought to highlight the fact that the bank was unaffected by the controversy by pointing out that the bank had added Rs 29,200 crore of current and savings account deposits and that fee income was the highest in four years.

The board of the bank recommended a dividend of Rs 1.50 per equity share of face value of Rs 2 each, subject to requisite approvals.

There are also allegations that NuPower got investments of Rs 325 crore from Mauritius-based Firstland Holdings, a company owned by Nishant Kanodia, son-in-law of Essar Group co-founder Ravi Ruia. The company's market cap stood at Rs 1,98,812.96. This loan was later classified as NPA.

The bank managed to report a profit despite an additional Rs 15,737 crore loans slipping into the non-performing category.

Also, there was no clarity over the alleged Rs 64-crore loan (unsecured fully convertible debentures) given to NuPower by Supreme Energy, which was 99.99 per cent owned by Videocon chief Venugopal Dhoot at that time.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.