Moneycontrol
Last Updated : Jun 25, 2018 10:36 AM IST | Source: Moneycontrol.com

ICICI Bank’s stock falls 2% as whistle-blower alleges incorrect accounting

The bank now faces allegations of "irregularities in the conduct of some borrower accounts" and "incorrect accounting", thanks to a third whistleblower complaint in as many years.

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Shares of ICICI Bank lost around 2 percent in the morning trade as investors turned cautious of another whistleblower complaint against it.

The stock has touched an intraday high of Rs 300.20 and an intraday low of Rs 295.45.

The bank now faces allegations of "irregularities in the conduct of some borrower accounts" and "incorrect accounting", thanks to a third whistleblower complaint in as many years.

After the complaint was received in March, the country's largest private lender instituted an inquiry into the matter under the supervision of the audit committee of the board of directors.

The findings of the inquiry had no material impact on the financial statements for the year ended March 2018, ICICI Bank said in a statement to stock exchanges on Friday evening.

The complaint alleged that --

Irregularities in the conduct of some borrower accounts, resulting in incorrect asset classification. The complaint cited 31 loan accounts in respect of which the above was alleged.

Incorrect accounting of interest income and NPA recoveries as fees. No specific examples were cited in the complaint.

Overvaluation of security for corporate loans. No specific examples were cited in the complaint

The bank's internal investigation found that all 31 loan accounts had been classified non-performing assets (NPAs) well before the complaint was filed.

Of these, 29 accounts were classified NPA between March 31, 2012 and March 31, 2017, while two others were classified NPA between March and December, 2017, the bank said.

As was made clear by the bank, it had already classified the loans mentioned in the complaint as NPAs, before it became aware of said complaint.

At 10:25 hrs, ICICI Bank was quoting at Rs 296.00, down Rs 4.85, or 1.61 percent, on the BSE.
First Published on Jun 25, 2018 10:33 am
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