ICICI Bank warns against increased regulatory scrutiny - The Economic... https://economictimes.indiatimes.com/industry/banking/finance/banking/...

Business News › Industry › Banking/Finance › Banking

03:59 PM | 01 AUG CLOSED SENSEX NIFTY 50 GOLD (MCX) (Rs/10g.) USD/INR CREATE
PORTFOLIO
MARKET STATS 37,521 -84.96 11,346 -10.30 29,460.00 -193.00 68.43 -0.12

ICICI Bank warns against increased regulatory

BY SALONI SHUKLA, ET BUREAU | AUG 01, 2018, 07.19 PM IST

Private sector lender ICICI Bank has warned against increased regulatory scrutiny and
RELATED COM
reputational risks due to the ongoing investigation against its CEO Chanda Kocchar. The
bank in a filing with the US Securities and Exchange Commission (SEC) has also ICICI Bank
cautioned that if any bank official is found guilty it could adversely impact its operational
results and financial condition. Big Change:
The end of Five

“In the event that the Bank or individuals associated with the Bank are found by the
independent enquiry, the SEBI enquiry or the CBI investigation to have violated applicable laws or regulatio
associated with the Bank could become subject to legal and regulatory sanctions that may materially and a
operations, financial condition and reputation,” the bank said in an annual filing to the US securities regulat

“We are at increased risk for inquiries or investigations by regulatory and enforcement authorities, which m
reputation, lead to increased regulatory scrutiny, cause us to incur additional costs or adversely affect our a

ICICI Bank has been in the midst of series of charges against its CEO Kochhar that first began in 2016. Mu
alleged that she failed to disclose the business relationships her husband Deepak Kochhar had with some
ICICI Bank sanctioned loans in which she was instrumental. The charge is that some of the loans to Video
granted as a quid pro quo for business dealings with her husband Kochhar. But the ICICI Board had denie

The bank also for the first time publicly acknowledged that the Board of Directors have instituted an indepe
former Supreme Court Judge, Justice B. N. Srikrishna to probe allegations of quid pro quo against Kochha
was being supported by an independent law firm and a forensic firm, the bank said.

“The Audit Committee of the Bank has instituted an independent enquiry, headed by a former Supreme Co
allegations relating to the MD and CEO, Ms. Chanda Kochhar is on a leave of absence pending the outcom
enquiry,” the filing made to US SEC said. “The allegations include nepotism, quid pro quo and claims that M
conflicts of interest caused by certain transactions between certain borrowers of the Bank and entities cont
spouse, committed infractions under applicable regulations and the Bank’s Code of Conduct.”

In May this year, SEBI had issued a show-cause notice to Kochhar and ICICI after multiple whistleblower a

1 of 3 8/2/2018, 8:23 AM
ICICI Bank warns against increased regulatory scrutiny - The Economic... https://economictimes.indiatimes.com/industry/banking/finance/banking/...

submitted that it was responding to the relevant allegations made in the notice which pertain to ICICI. It als
Central Bureau of Investigation has initiated a preliminary enquiry against various individuals and firms incl
officials of the Bank.

In June, ICICI Bank had informed that Kochhar will go on leave pending investigation and Sandeep Bakhs
Operating Officer to run the bank’s day-to-day operations. The Reserve Bank of India on Wednesday appro
Bakhshi as COO for a period of three years.

Stay on top of business news with The Economic Times App. Download it Now!

Live Market Industry

News Newsletters
Portfolio Commodities
Powered by Mobile Speed
Live TV Blogs
Biz Listings RSS

Download it from
FOLLOW US APP STORE

Other Times Group news sites Hot on the Web

इकनॉ मक टाइ स| ઈકોનોિમક ટાઈ સ | Pune Mirror | Bangalore Mirror | Ahmedabad Mirror Share Market | GST | Income Tax Slabs
| ItsMyAscent | Education Times | Brand Capital | Mumbai Mirror | Times Now | Top ELSS Funds to Invest | How to save Inco
Indiatimes | नवभारत टाइ स | महारा टाइ स | ಜಯ ಕ ಾ ಟಕ | Go Green | AdAge India | to earn money | Income Tax Calculator
Eisamay | IGN India | NavGujarat Samay | Times of India | Samayam Tamil | Samayam
Telugu | Miss Kyra | Bombay Times | Filmipop | BrainBaazi | BrainBaazi APP Services
Book print ads| Online shopping | Matrimonial
Living and Entertainment Property | Buy car | Bikes in India | Free Class
Timescity| iDiva | Entertainment | Zoom | Healthmeup | Luxpresso | Gadget Reviews | | Restaurants in Delhi | Remit to India
Titanium & Platinum Credit Card | Online Songs | MensXP | Hotels | Travel TimesMobile | Real Estate Developers
Destinations | Cricbuzz | Recipes | Gaana | Happytrips | Getsmartapp Gadgets Now | Free Business Listings
AliveAR | Getsmartapp App | ETMoney Finan
Interest Network
itimes

In Case You Missed It

All about PNB Fraud Income Tax Calculator

Home Loan Calculator How to file ITR

Reliance Jio Kiki Dance Challenge

Education Loan Calculator Income Tax

HDFC Bank Jet Airways Pay Cut

2 of 3 8/2/2018, 8:23 AM
ICICI Bank warns against increased regulatory scrutiny - The Economic... https://economictimes.indiatimes.com/industry/banking/finance/banking/...

WhatsApp Payment IFSC Code

Copyright © 2018 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Se

3 of 3 8/2/2018, 8:23 AM