Probe against Chanda Kochhar will harm reputation: ICICI Bank tells US SEC filing

ICICI Bank on Wednesday in US SEC filing said that an investigation against CEO Chanda Kochhar would put a dent on its reputation. The bank said that an ongoing enquiry into allegations against its MD and CEO Chanda Kochhar as well as another probe into NPA loan accounts could affect its ability to conduct business, as part of its Form 20F annual report to the US markets reguator Securities and Exchange Commission (SEC). 

“The bank is in the process of responding to the relevant allegations in the notice (from SEBI) which pertain to the bank. The CBI also initiated a preliminary enquiry against various individuals and firms, including unknown officers and/or officials of the bank,” ICICI Bank informed the SEC.

“Based on the interim report and review undertaken for additional loan accounts, the bank has concluded that the likely impact of these allegations is not material to the financial statements for the year ended March 31, 2018, or earlier periods reported in this annual report,” it said in the filing.

Earlier this week, ICICI Bank has said that provisions against bad loans are expected to remain at elevated levels in the current financial year as the lender would have to earmark more funds for meeting the RBI norms.

The bank made a provision of Rs 17,307 crore against bad loans in 2017-18 as against Rs 15,208 crore in the year prior to that, ICICI Bank top management had said in an investors' call.

In the fourth quarter of 2017-18, the bank's provisions sharply jumped to Rs 6,626 crore compared to Rs 2,898 crore in the corresponding quarter 2016-17.

Meanwhile, ICICI Bank on wednesday said the the Reserve Bank of India has approved the appointment of Sandeep Bakhshi as the Chief Operating Officer with effect from July 31, 2018 for three years.

"We wish to inform you that RBI vide its letter... dated July 31, 2018 has approved the appointment of Sandeep Bakhshi as Wholetime Director designated as Chief Operating Officer (COO) of the bank effective July 31, 2018 till July 30, 2021.

Earlier on June 18, the bank had informed about the appointment of Bakhshi as Wholetime Director and COO with effective from June 19, 2018 or the date of receipt of RBI approval, whichever was later.

"We affirm that Sandeep Bakhshi is not debarred from holding the office of director by virtue of any order of SEBI or any other such authority," ICICI Bank said in a regulatory filing.

CEO Chanda Kochhar will be on leave till completion of the external enquiry against her in the Videocon loan matter and named Sandeep Bakhshi as chief operating officer, who would be handling all the businesses, ICICI Bank had said in June.