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ICICI Bank shares extend losses after CBI registers FIR in Videocon loan case; key things to know

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Updated: January 25, 2019 12:26:28 PM

Shares of India's largest private sector lender ICICI Bank extended losses on Friday, a day after the CBI registered an FIR against former CEO and MD Chanda Kochhar, her husband Deepak Kochhar and Videocon group MD Venugopal Dhoot in relation to a loan case.

chanda kochhar, RBI, ICICI bank, public sector bank, videocon groupKochhar resigned as CEO of ICICI Bank in October 2018.

Shares of India’s largest private sector lender ICICI Bank extended losses on Friday, a day after the CBI registered an FIR against former CEO and MD Chanda Kochhar, her husband Deepak Kochhar and Videocon group MD Venugopal Dhoot in relation to a loan case. ICICI Bank shares slumped by nearly 1.8% to Rs 358.50, to emerge among the biggest losers in Sensex.

In a major development, CBI registered a case against ICICI Bank’s former MD & CEO Chanda Kochhar in the high-profile Videocon loan case, which led to her unceremonial exit from the bank amid allegations of impropriety in giving a loan to a company related to her husband’s business. Videocon promoter Venugopal Dhoot allegedly invested crores of rupees in Nupower, months after the Videocon group got Rs 3,250 crore as loan from the ICICI Bank in 2012.

The federal investigation agency was looking into a possible quid pro quo where Chanda Kochhar may have favoured Videocon, which had an investment in a firm promoted by her husband Deepak Kochhar. Notably, Chanda Kochhar had initially denied any conflict of interest, and the bank’s board backed her at first. “I think this is just a good beginning of the investigation. Its roots will go further deep and outside India also. I want the government to see how few companies in India are getting money from abroad. Whose money is this? Chanda Kochhar is just a tip of the iceberg. The situation is the same in all the banks. I feel all the corrupt bankers will now think 10 times before doing something wrong,” whistleblower in the case Arvind Gupta said, according to news agency ANI.

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A section of public sector bankers on Thursday raised questions about the RBI seeking powers to regulate state-owned banks saying it apparently failed to act against officials in the ICICI Bank-Videocon matter despite claiming to have enough powers to deal with private sector lenders, news agency PTI reported.

After registering an FIR Wednesday night, the Central Bureau of Investigation teams scanned four locations – offices of Videocon in Mumbai and Aurangabad, Nupower Renewables and Supreme Energy in Nariman point in Mumbai. The searches at the locations are underway, PTI reported the officials sa saying.  Managing Director of Videocon group Venugopal Dhoot, his companies Videocon International Electronics Ltd (VIEL) and Videocon Industries Limited (VIL), a company, Supreme Energy, founded by him and a company controlled by Deepak Kochhar, Nupower Renewables have also been made accused in the CBI FIR, the report added CBI officials as saying.

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