The RBI’s inspection report and its evaluation of ICICI Bank’s management has no warning of the Videocon-ICICI fiasco that followed or the controversies surrounding the private bank’s CEO and MD Chanda Kochhar
Despite the steady deterioration in ICICI Bank’s credit risk profile between FY13 and FY15 and the share of its top 20 borrowings having risen to 20.30 percent, the Reserve Bank of India (RBI) failed to do any credit analysis of these borrowers, Moneylife reports. This in turn exposed the bank to higher risk, it added.
RBI’s inspection report and its evaluation of ICICI Bank’s management has no warning of the Videocon fiasco that followed or the controversies surrounding the private bank’s CEO and MD Chanda Kochhar, the report said. It cited the RBI’s annual inspection reports, which Right to Information (RTI) activist Girish Mittal was able to draw on, to highlight how in the period under consideration, credit risk of ICICI Bank was higher than that of Axis Bank.
The development follows the release of RBI’s annual inspection report on ICICI Bank for FY13, FY14 and FY15.
Images of RBI’s reports pertaining to relevant sections bring to light the heightened overall risk in the aforementioned period as ICICI Bank’s aggregate risk score rose from 2.040 (which is considered medium risk) in FY13 to 2.396 in FY15, a clear indicator of heightened overall risk.