Govt nominee director on ICICI board awaits report from probe agencies

Government nominee director on the board of ICICI Bank is unlikely to attend meeting till it gets feedback from investigative agencies on allegation of conflict of interest involving its chief Chanda Kochhar.

"If government nominee attends the board meet then it would be found endorsing board view. (The) government thinks that the govt view can be overruled as they are minority shareholder," official sources said when asked why the director (Lok Ranjan joint secretary in the finance ministry) skipped crucial board meeting of ICICI Bank yesterday.

Yesterday, the board meeting was to broadly approve the quarterly and annual financial results of ICICI Bank.

So, it would be prudent to attend board meeting only after the feedback from various investigative agencies are out, sources said.

The government nominee director also skipped the board meeting called today to discuss strategy, budget and planning for 2018-19.

When asked what would be the government stance on ICICI bank case, sources said it would take stand based on regulatory and investigative report.

There are series of allegations of impropriety at ICICI Bank -- extending loans to some companies and enjoying reciprocal benefits.

It is alleged that family members Kochhar, including her husband Deepak Kochhar, got financial favours from the borrowers against the loans sanctioned by the bank.

The issue is being investigated by multiple agencies, including CBI and Income Tax Department.

Amid controversy of alleged conflict of interest involving ICICI Bank and its CEO, former Sebi chief M Damodaran has said one option is for her to step down for a period of three or four months till the investigation is completed.

Asked why the government is keeping away from the affairs of the bank, sources said, RBI as the regulator has power to inspect books of ICICI Bank because it is a private sector bank.

Yesterday, ICICI Bank reported a 45 per cent decline in consolidated net profit to Rs 1,142 crore for three months ended March as bad loans surged.

On a standalone basis, the bank recorded a 50 per cent fall in net profit at Rs 1,020 crore in the latest fourth quarter. In the year-ago period, the same stood at Rs 2,025 crore.