Shares of India's third-largest lender ICICI Bank tumbled more than 3% on Wednesday from the day's high as concerns over the alleged impropriety in loans to Videocon group companies continued to weigh on the lender.
Shares of India’s third-largest lender ICICI Bank tumbled more than 3% on Wednesday from the day’s high as concerns over the alleged impropriety in loans to Videocon group companies continued to weigh on the lender. Shares of ICICI Bank dropped about 3.07% to a day’s low of Rs 265 from a day’s peak of Rs 273.4 in the mid-morning trades on Wednesday on BSE. The stock of ICICI Bank started marginally down at Rs 267.8 on Wednesday as against yesterday’s closing price of Rs 269.6.
ICICI Bank shares had crashed nearly 6% to a 5-month low on Monday, witnessing the first stock market reaction since the matter broke out late last week. The stock had recovered partially on Tuesday. An unusually high trading volume was observed in the shares of ICICI Bank on Monday. At the close of dealing on that day, about 7.3 crore equity shares of ICICI Bank exchanged hands on National Stock Exchange alone. Whereas today, up until 12:30 pm, more than 2.07 crore shares of ICICI Bank have been traded on both NSE and BSE.
ICICI Bank’s troubles in the alleged quid pro quo between Videocon’s Venugopal Dhoot and ICICI Bank MD&CEO Chanda Kochhar’s husband Deepak Kochhar seem far from over, even after the bank’s board, its Chairman M K Sharma and former Chairman N Vaghul throwing their full weight behind Chanda Kochhar.
Incremental details of the bank’s trouble with regulators and investigators in the matter seem to be continuing to weigh on the stock. CBI is already known to be conducting a preliminary enquiry into the allegations. Yesterday, PTI reported citing unidentified officials that the Income Tax Department has issued a notice to Deepak Kochhar with regard to a tax evasion probe in the Videocon bank loan case.
Today, another news report said that the SFIO (Serious Fraud Investigation Office) may also be looking to probe the issue, and is waiting for the nod from Ministry of Corporate Affairs. Yet another report said that RBI may also look into the matter.
Earlier on Monday, ICICI Bank shares dived 7% intraday after the investigative agency the Central Bureau of Investigation launched a preliminary enquiry in connection with the loan given to Videocon Group. The stock also faced the jitters of the Reserve Bank of India slapping a fine of nearly Rs 59 crore last week on account of non-compliance in the sale of securities.