Last week, media reports mentioned the alleged involvement of Kochhar and her family members in a loan provided to Videocon group on quid pro quo basis.
Private sector ICICI Bank board today approved redemption of 350 unlisted preference shares of Rs 1 crore each and decided to reclassify all kinds authorised share capital into equity. However, the bank did not say anything with regard to review of insolvency cases which was part of board meeting agenda for today. This is the first time ICICI Bank’s board met after the controversy over alleged conflict of interest involving its CEO Chanda Kochhar and Videocon group broke out. Necessary alterations to be carried out in the relevant capital clause of the Memorandum of Association and Article of Association of the bank which would come into effect upon redemption, ICICI Bank said in a filing to stock exchanges.
The alteration will be subject to approval of the RBI and members, it said after board meeting. “In view thereof, the board at its meeting held today approved the redemption on the maturity date along with payment of applicable dividend at the rate of Rs 100 per annum per share of Rs 1 crore each aggregating to Rs 35,000 on the preference shares,” it said.
Consequently, it said, “The board approved reclassification of authorised share capital which presently includes equity, preference shares and unclassified shares into one category equity shares.” The bank will redeem 350, comprising of 0.001 per cent unlisted redeemable non-cumulative, preference shares of Rs 1 crore each allotted on April 21, 1998 with a tenure of 20 years are due for redemption on April 20, 2018.
Earlier in the day, the bank said, “ICICI Bank’s board meeting being held today is a pre-scheduled board meeting convened for review of cases which are before National Company Law Tribunal under Insolvency and Bankruptcy Code, and other routine matters.” It’s important to note that the board has been meeting regularly in the first week of April in the previous years too, to review progress in resolution of large cases, it said.
Last week, media reports mentioned the alleged involvement of Kochhar and her family members in a loan provided to Videocon group on quid pro quo basis. Concerns were also raised about transactions of Videocon group and NUPower Renewables, a company operated by her husband Deepak Kochhar. The CBI has also questioned few ICICI Bank officials as part of a preliminary enquiry to find if any quid pro quo was involved in the bank’s issuance of Rs 3,250-crore loan to the Videocon Group in 2012.
ICICI Bank’s board, however, has reposed full faith in Kochhar. Meanwhile, in a separate filing, the bank said it has not received any communication from the Enforcement Directorate relating to enquiry into the loan to Videocon group. ICICI Bank’s shares ended at Rs 261.90 apiece on BSE, down 5.93 per cent over the previous close.