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ICICI Bank says US SEC probe on lender’s loan impairment provisions over; no action to be taken

US SEC had conducted a probe into the allegations related to bank’s loan impairment provisions taken under US GAAP for fiscal years prior to 2017

October 28, 2020 / 08:26 AM IST
 
 
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Private sector lender, ICICI Bank has said it has received a communication from the United States Securities and Exchange Commission saying that an  investigation into the Bank's loan impairment provisions under US GAAP is concluded and SEC does not intend to take any enforcement action against the bank.

"The bank has via its legal counsel received a communication from the United States Securities and Exchange Commission (SEC) that they have concluded their investigation into the Bank's loan impairment provisions under US GAAP and that the SEC does not intend to take any enforcement action against the bank," ICICI Bank said in a note to exchanges on October 27.

In an earlier disclosure on July 27, 2018, the bank had said that there was a request for information from the SEC investigatory staff linked to the timing and amount of the bank's loan impairment provisions taken under US GAAP for fiscal years prior to 2017, in respect of which the bank extended complete co-operation to the SEC.

On 26 July, 2018, a report by Livemint said, that US SEC has intensified its investigation into alleged wrongdoings by ICICI Bank with respect to certain accounting practices. The probe was especially related to loans disbursed between 2010 and 2016, many of which turned bad later wherein the bank allegedly delayed provisioning, the report said.

Provisions refer to the money set aside by banks under norms to cover potential losses from bad loans. This amount varies depending on the stage of default.

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In its earlier response to exchanges, ICICI Bank had said that the Bank has voluntarily complied with all requests of the US SEC investigatory staff for information and interviews related to the bank's US GAAP loan impairment process.
Moneycontrol News
first published: Oct 28, 2020 08:26 am

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