Videocon: Much Deeper Questions Into Loans Provided To Videocon Possible, Says Previous ICICI Bank Chairman

Loans offered by ICICI Bank Ltd. to the Videocon group were a debt consolidation of existing loans, stated the loan provider’s former Chairman Narayanan Vaghul in an interview to BloombergQuint. Vaghul, however, agreed that the bank’s board might have considered a much deeper external query into the matter in the interest of good governance.The bank’s board

felt no further need for a query based upon their own examinations, and thus, they came out with the statement, Vaghul told BlooombergQuint. “The board, however, could have quickly done a much deeper examine the matter,” Vaghul said.Reports have actually alleged that company transactions between Chanda Kochhar’s hubby Deepak Kochhar and the Videocon Group resulted in a quid pro quo through loans provided by ICICI Bank to Videocon Industries. In a statement provided recently, the board rejected any dispute of interest. The board also stated that the loan of Rs 3,250 crore given by ICICI Bank to Videocon Industries belonged to a consortium loan arrangement involving 20 banks.Vaghul said that the bank did not grant any fresh loans to the Videocon Group in 2012.

Existing loans were consolidated in 2012, he stated, including that “the loans will be completely offered and will be taken to the personal bankruptcy procedures in the regular course. “Vaghul included he would rather wait for the CBI’s inquiry to be completed before making a judgement on whether there was a dispute of interest involved.Vaghul recommended that the bank put all realities in the public domain to assist clarify. “That will to some extent be looked after by the CBI’s initial query,”Vaghul said.The bank’s former chairman included that it is very important to identify between the bank’s position and Chanda Kochhar’s position.So far as the bank is concerned, it is a regular loan which has been offered. It has been aggregated and provided as part of the consortium. It has actually become bad and will be handled as other bad

asset. I do not think Kochhar’s involvement in anything is going to result ICICI Bank’s functioning. Far as Kochhar’s connection is concerned and your point that they might have gone for an external query, I expect there is a point in exactly what you state. Having now reached a point where the CBI has actually started an initial questions, they have to finish it and come out with a statement.N Vaghul, Former Chairman, ICICI Bank Shares of ICICI Bank declined as much as 6.5 percent, the most because August 2017, the other day

. They were trading 1.8 percent higher today at Rs 266.55 at