The Indian Express’ lead story today, headlined “Videocon gets Rs 3250-cr loan from ICICI Bank, bank CEO’s husband gets sweet deal from Dhoot”, details a stunning case of conflict of interest that involves country’s top corporate and bank. Essentially, the story pertains to what might have been a kickback from Videocon to ICICI Chief Operating Officer Chanda Kochar’s husband in lieu of a Rs 3,250-crore loan. This loan was declared as a non-performing asset in 2017.
However, The board of ICICI Bank threw its weight behind chief executive Chanda Kochhar, squelching speculation about nepotism and corruption over loans to the Dhoot family-promoted VideoconBSE group of companies. The lender’s stock price has dropped 6% in the past 10 days or so.
“The board has full confidence and reposes full faith in the bank’s MD & CEO Chanda Kochhar,” it said in a release. “On looking at all the above facts, the board has come to the conclusion that there is no question of any quid pro quo/nepotism/conflict of interest as is being alleged in various rumours.”
The loans were among those given by a consortium of about 20 lenders, the bank said. ICICI Bank’s share was about 10% and the rest was provided by others under the same terms and conditions.