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Icici bank & videocon controversy


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Icici bank & videocon controversy

  1. 1. ICICI Bank & Videocon Controversy
  2. 2. Company Involved - • Videocon group • NuPower Renewable Private ltd. • Supreme Energy Pvt. Ltd. • Pacific Capital • Pinnacle Energy Trust
  3. 3. Facts : • 2012 – a consortium of 20 banks led by SBI provide loan to Videocon group of Rs. 40,000 crore • Out of which, ICICI bank provide 3250 crore and in 2017, 2810 crore has declared as NPA
  4. 4. Questions which the bank hasn’t provided clear answers • Was ICICI Bank boss Chanda Kochhar aware about her husband Deepak Kochhar’s joint venture with Dhoot when the company’s loan proposal came to the bank? • Was the 12-member ICICI Bank credit committee, which decided in favor of the Videocon loan, and the lender's board aware about the Kochhar-Dhoot connection?
  5. 5. • If yes, why didn’t Kochhar recuse herself from a credit committee that decided on a loan to the Videocon Group in 2012? • One of the 5 companies in the Videocon group , Evans Fraser which was co – obligor to the ICICI bank loan in 2012, had net sales of 75 crores in 2011 & net profit of 94 lakh • There was 650 crore loan sanctioned against the collateral of Evans Fraser which was close to 9 times its total sales
  6. 6. Impact on share price of ICICI bank
  7. 7. ICICI Bank Statement : “ICICI Bank was not the lead bank for this consortium and the bank only sanctioned its share of facilities aggregating approximately Rs 3,250 crore which was less than 10 per cent of the total consortium facility in April 2012,"