No Need For Chanda Kochhar To Recuse Herself: ICICI Bank Chairman

ICICI Bank’s Chairman MK Sharma on Thursday, 29 March said that CEO and Managing Director Chanda Kochhar was not the chairperson of the committee that sanctioned the loan to Videocon Group. He added that the bank’s board did not see any conflict of interest – and that Kochhar has been making all disclosures in accordance with regulations.

Some of the key points made by Sharma at the press conference are:

• Chanda Kochhar was part of the credit committee that approved loan to Videocon Group.
• The board does not see conflict of interest as Videocon Group was not an investor in Nupower.
• Board saw no need for her to recuse herself.
• The loan was part of the consortium arrangement.
• She has been making all her disclosures in accordance with regulatory guidelines
• We have satisfactorily replied to all regulatory questions. This is part of regular activity. As it is privileged information we cannot share it.
• The company will not share any specific details regarding communication with regulators.

Questions Yet To Be Fully Answered By ICICI Bank

Towards the end of his brief statement, which mirrored the ICICI Bank board’s press statement issued on Wednesday, 28 March, Sharma listed a few questions received by bank from various media and offered some responses.

Shouldn’t Chanda Kochhar have recused herself from the committee that approved the Rs 3,250 crore loan to the Videocon group, given that her spouse had business dealings with the Group?

Sharma said that the board did not see any conflict of interest as the Videocon Group was not an investor in Nupower. The loan was part of a consortium agreement and hence the board did not see any reason for Kochhar to recuse herself.

But Sharma did not acknowledge that as per an Indian Express report and a whistleblower blog written in 2016, Videocon Group-promoter Venugopal Dhoot was an investor in Nupower.

Did Chanda Kochhar disclose her spouse’s business relationship with the Videocon Group at the time ICICI Bank approved the loan to it?

All Sharma said was that Kochhar has been making all her disclosures in accordance with regulatory guidelines.

He did not mention whether this specific disclosure had been made.

Has banking regulator Reserve Bank of India sought details regarding the ICICI Bank’s and Deepak Kochhar’s transactions with Videocon Group?

Sharma said the bank had “satisfactorily replied to all regulatory questions”. That such communication was part of regular activity and also privileged information. He said the bank will not share any specific details regarding communication with regulators.