ICICI bank came out in full support of its chief executive Chanda Kochhar, rubbishing reports of wrongdoing in loans given to debt-laden Videocon. In Kochhar's defence, chairman MK Sharma said Kochhar was not head of the committee and large loans are approved by board's credit committee.
MK Sharma said, "Board has reviewed internal processes for loans. Share of sanction to the Videocon group is less than 10%, and exposure to Videocon has gone down in percentage terms since."
"Terms and conditions of the loan were similar to those offered by other banks in the consortium which constitute 90% of the consortium. The loan was disbursed to an escrow pool account and not directly to Videocon group. The board concluded there was no question or scope for any favouritism, nepotism or quid pro quo on the part of Kochhar. No individual employee has the ability to influence credit given by the bank", Sharma said.
Sharma added that Kochhar has been making all her disclosures to the company under the required law.
On regulatory intervention in the case, Sharma said the bank had satisfactorily replied to all the questions of the regulators. "However, it's an ongoing process. It's a privileged communication so the company cannot share specific details about queries by the regulator. "