US SEC not to take action against ICICI Bank in provisioning probe

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October 28, 2020 7:30 AM

ICICI Bank on Tuesday said the US Securities and Exchange Commission (SEC) has concluded a probe into the bank’s bad-loan provisioning exercise and decided not to take any enforcement action against it.

The loan scheme is targeted at the informal segment of the population who wish to purchase their own home, but may not have all documents that a formal financial institution would require, ICICI Home Finance said.ICICI Bank’s shares ended at Rs 409.85 on Tuesday, 1.21% higher than their previous close on the BSE.

ICICI Bank on Tuesday said the US Securities and Exchange Commission (SEC) has concluded a probe into the bank’s bad-loan provisioning exercise and decided not to take any enforcement action against it. The probe dates back to 2018, when the lender had received requests for information from the SEC investigatory staff for an enquiry relating to the timing and amount of the bank’s loan impairment provisions taken under US GAAP (generally accepted accounting principles).

“The Bank has via its legal counsel received a communication from the United States Securities and Exchange Commission (‘SEC’) that they have concluded their investigation into the Bank’s loan impairment provisions under US GAAP and that the SEC does not intend to take any enforcement action against the Bank,” ICICI Bank said in a notification to the exchanges.

On July 27, 2018, ICICI Bank had said in response to the exchanges’ queries on a report by Livemint that it had been cooperating with the SEC’s requests for information. The lender had said that it evaluates loans for impairment under US GAAP for the purpose of preparing the annual footnote reconciling its Indian GAAP financial statements to US GAAP. “The Bank has voluntarily complied with all requests of the US SEC investigatory staff for information and interviews related to the Bank’s US GAAP loan impairment process,” ICICI Bank said in its July 2018 notification to the exchanges.

ICICI Bank’s shares ended at Rs 409.85 on Tuesday, 1.21% higher than their previous close on the BSE.

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