We are little skeptical on the way things are turning out in ICICI Bank especially post Fitch expressed doubts about the corporate governance standards at ICICI Bank, amid allegations of impropriety against
Chanda Kochhar.
In the case of Axis Bank, there was a clear regulatory direction from the RBI. That hasn’t happened as far as ICICI Bank is concerned. If the regulator is unhappy with the board’s decision to give a clean chit to Kochhar, it should be communicated clearly.
I believe looking at the seriousness of the allegations, the board of directors, as the custodian of the interests of all stakeholders, should order an independent inquiry So, till further clarity emerges, the development will be an overhang for the stock.
The next trigger for bank from a stock market perspective will be the fourth quarter earnings. Market expectations from are muted, given the bad loan problem in the sector appears to be far from over.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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