ICICI examines pending insolvency cases in Board meeting

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Furthermore, the private lender noted that contrary to the reports of a meeting being convened for discussing the alleged conflict of interest with the Videocon Group, the Board conducted the same as part of a routine set of meetings carried out in the first week of April each year to review the progress in the resolution of large cases. The bank has denied the allegations and its board has defended its CEO.

In a related development, the CBI officials said that Deepak Kochhar, who has been named in a preliminary enquiry, will be called for questioning soon.

ICICI Bank had loaned Dollars 100 million through its Canadian subsidiary to Videocon, which was repaid in full with interest, Dhoot said, adding that there were enquiries by the Enforcement Directorate in the matter, but it did not find any wrongdoing under the foreign exchange management laws.

Videocon Group chairman Venugopal Dhoot is said to have invested in NuPower Renewables Pvt Ltd and extended a Rs 64-crore loan after Videocon secured a loan from a consortium of banks that included ICICI.

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"We have satisfactorily replied to all the questions of the regulators which is an on-going process for a regulated entity like a bank and the regulator of government departments", ICICI Bank chairman M.K. Sharma had said during a media interaction last week. Sources said CBI is looking into allegations of quid pro quo involved in the transfer of proprietership of Videocon-run Nupower Renewables to a trust managed by Deepak Kochhar, the husband of Ms Kochhar, six months after ICICI Bank released a loan of Rs 3,250 crore to Dhoot's Group as a member of the consortium. Around 33.17 per cent is held by Pinnacle Energy, whose managing trustee is Deepak. The whistleblower wrote in his letter that transactions between Videocon Group to Nu Power Renewables, a company run by Kochhar was suspicious. In the plea, ICICI said the company failed to repay a loan of Rs 3.13 billion to the bank after the 500-Mw hydropower project, which was supposed to be commissioned in 2012, remained unfinished. It also reduced its holding in Cemex Sa (NYSE:CX) by 1.46 million shares in the quarter, leaving it with 3.99 million shares, and cut its stake in Ally Financial Inc (NYSE:ALLY). "The Videocon group account has been classified as an NPA during 2017".

The stock is now trading at Rs262 down by Rs16.4 or 5.89% from its previous closing of Rs278.40 on the BSE.

ICICI Bank's shares were down 4.4 percent at 266.1 rupees as of 0404 GMT after declining to 265.10 rupees, their lowest since late October. Regardless of central agencies stepping up pressure on ICICI Bank, the 30-share Sensitive Index of BSE and 50-scrip Nifty of NSE snapped last week's losing run and recovered to be positive to F&O derivatives' new series for April. Quoting Bloomberg Data, the report states that 50 brokerages have buy ratings on the bank, while 1 has sell and 3 have hold ratings.

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