The ICICI Bank Board in a press release has put its weight behind Chanda Kochhar. The board has noted that the bank has a well-structured and standarised credit approval process.
The ICICI Bank Board in a press release has put its weight behind Chanda Kochhar with regards to loans given to Videocon.
(This is in relation to 2016 compliant by an investor named Arvind Gupta who had alleged that there is a nexus between the then Joint Managing Director Chanda Kochhar and the Videocon Group loans. Where he said various loans were extended to Videocon amounting to Rs 3,250 crore and these were sanctioned under Chanda Kochhar in return for favours for NuPower, which was a company, initially by Dhoots and Ms Kochhar’s husband Deepak Kochhar, majority held by him)
The board has noted that the bank has a well-structured and standarised credit approval process. They point out that in this credit approval process, multiple independent departments are involved in providing independent credit risk rating, doing credit appraisal, credit approval and monitoring the proposals.
The board has also noted that the bank’s credit approval authorization framework is laid down by the Board of Directors. The larger exposures are approved by the credit committee of the board and the majority of that credit committee are independent directors of the bank. The Chairman of the Credit Committee till as late as 2016 was always a non-executive director.
So, based on the above it can be concluded that there are adequate checks and balances in the loan appraisal, rating, approval process within the bank both from the control as well as governance perspective.