ICICI Bank - Revision history

Pdewan: /* Bad practises */

2023-11-30T18:36:52Z

‎Bad practises

Jyoti at 06:59, 28 November 2023

2023-11-28T06:59:11Z

Jyoti: /* Money for refinancing Videocon loans was against policy */

2019-02-01T15:37:43Z

‎ Money for refinancing Videocon loans was against policy

Jyoti: /* Money for refinancing Videocon loans was against policy */

2019-02-01T15:36:46Z

‎ Money for refinancing Videocon loans was against policy

Jyoti: /* Money for refinancing Videocon loans was against policy */

2019-02-01T15:28:04Z

‎ Money for refinancing Videocon loans was against policy

Jyoti: /* 2019: Kochhar, husband booked for taking bribe from Dhoot */

2019-02-01T15:27:16Z

‎2019: Kochhar, husband booked for taking bribe from Dhoot

Jyoti: /* 2019: Kochhar, husband booked for taking bribe from Dhoot */

2019-01-27T05:20:35Z

‎2019: Kochhar, husband booked for taking bribe from Dhoot

Jyoti: /* The Kochhar controversy */

2019-01-27T05:17:42Z

‎The Kochhar controversy

Jyoti: /* HR/ human relations */

2018-10-10T00:03:33Z

‎HR/ human relations

Jyoti at 17:23, 17 January 2018

2018-01-17T17:23:32Z

@@ Line 9: / Line 9: @@
-=Bad practises=
+=Bad practices=
 ==RBI slaps record ₹ 12 crore fine==
 [https://timesofindia.indiatimes.com/city/mumbai/rbi-slaps-record-12cr-fine-on-icici-bank-over-lapses/articleshow/104511639.cms  Oct 18, 2023: ''The Times of India'']
@@ Line 35: / Line 35: @@
 The Reserve Bank of India has fined Paytm Payments Bank Rs 5.39 crore ($721,000) for non-compliance with Know Your Customer (KYC) norms and other regulations. The central bank conducted a special scrutiny of the bank's KYC/AML procedures and a system audit. The bank was found to have failed to identify beneficial owners of entities providing payout services and did not monitor payout transactions or carry out risk profiling. The bank also breached regulatory limits on end-of-day balances in certain customer accounts.
 =HR/ human relations =

@@ Line 6: / Line 6: @@
 |}
-[[Category:India |I ]]
-[[Category:Economy-Industry-Resources |I ]]
 =HR/ human relations =
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@@ Line 147: / Line 147: @@
 The CBI’s enquiry had begun on allegations that the Videocon group received loans worth Rs 3,250 crore from ICICI Bank, which were part of Rs 40,000-crore loans the group secured from an SBI-led consortium of 20 banks.
-== 2019/ Bonuses, ESOPs, and what Kochhar has to repay ==
+==2019/ Bonuses, ESOPs, and what Kochhar has to repay==
 [https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms   Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']

@@ Line 147: / Line 147: @@
 The CBI’s enquiry had begun on allegations that the Videocon group received loans worth Rs 3,250 crore from ICICI Bank, which were part of Rs 40,000-crore loans the group secured from an SBI-led consortium of 20 banks.
 == 2019/ Bonuses, ESOPs, and what Kochhar has to repay ==
 ==2019/ Bonuses, ESOPs, and what Kochhar has to repay==
 [https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms   Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']

← Older revision		Revision as of 15:28, 1 February 2019
Line 149:		Line 149:

	==2019/ Bonuses, ESOPs, and what Kochhar has to repay==		==2019/ Bonuses, ESOPs, and what Kochhar has to repay==
		+
	[https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']		[https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']

← Older revision		Revision as of 15:27, 1 February 2019
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	The CBI’s enquiry had begun on allegations that the Videocon group received loans worth Rs 3,250 crore from ICICI Bank, which were part of Rs 40,000-crore loans the group secured from an SBI-led consortium of 20 banks.		The CBI’s enquiry had begun on allegations that the Videocon group received loans worth Rs 3,250 crore from ICICI Bank, which were part of Rs 40,000-crore loans the group secured from an SBI-led consortium of 20 banks.
		+
		+	==2019/ Bonuses, ESOPs, and what Kochhar has to repay==
		+	[https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']
		+
		+	[[File: What Kochhar has to repay.jpg\|What Kochhar has to repay <br/> From: [https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']\|frame\|500px]]
		+
		+	[[File: Bonuses, 2009-18.jpg\|Bonuses, 2009-18 <br/> From: [https://timesofindia.indiatimes.com/business/india-business/sacked-with-retrospective-effect-chanda-kochhar-to-lose-esops/articleshow/67764942.cms Sacked with retrospective effect, Chanda Kochhar to lose ESOPs, January 31, 2019: ''The Times of India'']\|frame\|500px]]
		+
		+	Ten months after the board of ICICI Bank declared it reposed “full faith and confidence” + in Chanda Kochhar, MD and CEO at the time, and “there was no question of...nepotism, favouritism or quid pro quo”, it decided to terminate her services with retrospective effect. It asked her to repay over Rs 10 crore in bonuses since April 2009, and said it would revoke her stock options, the current market value of which is around Rs 346 crore (the loss to her would be the difference between the market value and the price at which the options were allotted).
		+
		+	The move follows a report by former Supreme Court judge + , B N Srikrishna, which found Kochhar guilty of violating the bank’s code of conduct in disbursing loans to Videocon group. Kochhar had gone on “leave” on June 18 last year pending completion of the enquiry, but on October 4, put in her papers, perhaps sensing which way the wind was blowing.
		+
		+	In a statement issued here, ICICI Bank said the enquiry report concluded that Kochhar was “in violation of the bank’s code of conduct, its framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations”.
		+
		+	This was because of her failure to effectively deal with conflict of interest and due disclosure or recusal requirements.
		+
		+
		+	'''Legal action needed to recover bonuses'''
		+
		+	A report by former SC judge, B N Srikrishna has found Chanda Kochhar guilty of violating ICICI Bank’s code of conduct. Though it has not been made public, it comes on the heels of the Central Bureau of Investigation (CBI) filing a first information report against Venugopal Dhoot, Videocon Industries, and Chanda and Deepak Kochhar on charges that loans were disbursed in return for favours.
		+
		+	According to sources, the report did not indict the bank’s board, which had appointed Cyril Amarchand Mangaldas to examine allegations first made by whistleblower Arvind Gupta in 2106. Gupta, in a letter to all authorities — including the finance ministry and Reserve Bank of India — had alleged that there was an “illicit banking and commercial relationship between Videocon Group of Venugopal Dhoot and ICICI Bank’s MD & CEO Chanda Kochhar’s family-owned NuPower Renewable Group steered by her husband Deepak Kochhar for amassing wrongful personal gains”. While the law firm cleared Kochhar in 2016, it subsequently withdrew its report in October 2018 after being informed by the bank of the fresh allegations against its CEO. Kochhar went on leave on June 18, 2018 and resigned on October 4.
		+
		+	While the board will have to initiate proceedings to recover the bonuses, the options allotted to her under the employee stock option plan can be revoked as these are within the control of the bank. Kochhar has received close to 94 lakh options over 10 years. These options entitle the holder to buy shares at a fixed price. Employees typically exercise their rights to purchase when there is a substantial appreciation in the value of the shares. Legal experts said the action by the bank would not have any impact on the criminal proceedings undertaken by the CBI.

	=Senior management compensation=		=Senior management compensation=

← Older revision		Revision as of 05:20, 27 January 2019
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	The CBI raided Videocon offices at Nariman Point, Mumbai, and Aurangabad, apart from Deepak Kochhar’s companies NuPower Renewables Ltd and Supreme Energy Pvt Ltd.		The CBI raided Videocon offices at Nariman Point, Mumbai, and Aurangabad, apart from Deepak Kochhar’s companies NuPower Renewables Ltd and Supreme Energy Pvt Ltd.
		+
		+	===₹64cr to Kochhars was quid pro quo===
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F25&entity=Ar01803&sk=5C014479&mode=text ₹64cr to Kochhars quid pro quo for ₹300cr bank loan to Dhoot, January 25, 2019: ''The Times of India'']
		+
		+
		+	''Dhoot’s Firm Invested In Kochhar Co A Day After Loan Was Sanctioned: CBI''
		+
		+	Loans to Videocon group turned non-performing assets in June 2017. The accusation against the ex-ICICI Bank chief and her spouse, however, date back to 2009
		+
		+
		+	'''• What is CBI investigating?'''
		+
		+	The CBI’s charge is that ICICI Bank sanctioned credit facilities of Rs 3,250 crore to Videocon group companies — Trend Electronics, Century Appliances, Kail, Value Industries and Evan Fraser & Co. On September 7, 2009, the bank disbursed Rs 300 cr to Videocon International and the next day a company originally floated by Dhoot, transferred Rs 64 crore into NuPower Energy a company floated by Chanda Kochhar’s spouse Deepak Kochhar.
		+
		+
		+	'''• Who are the accused?'''
		+
		+	The accused individuals are VN Dhoot, Chanda Kochhar and Deepak Kochhar Chanda was a part of the credit committee when loans were sanctioned to Videocon. The FIR also names NuPower Renewables floated by Deepak Kochhar and Dhoot’s companies which include Videocon International Videocon Industries, Supreme Energy and other unknown individual and unknown public servants.
		+
		+
		+	'''• What is the role of the companies?'''
		+
		+	NuPower was set up in December 2008 as a JV between Kochhar and Dhoot. Supreme Energy (SEL) was Dhoot’s company, incorporated in July 2008. The control of this company was transferred to Deepak Kochhar after Dhoot stepped down in 15.1.2009. SEL was transferred by selling its shares to Pinnacle Energy Trust a company managed by Deepak Kochhar. SEL’s Rs 64 crore investment in September 2009 was the first major capital infusion into NuPower.
		+
		+
		+	'''• What is the amount involved?'''
		+
		+	The FIR states that total loans worth Rs 3,250 crore were sanctioned to Videocon. CBI has pegged the value of misappropriated amount Rs 1,730 crore – the outstanding term loan as on April 26, 2012.
		+
		+
		+	'''• Why are other ICICI Bank officials named?'''
		+
		+	CBI has named eight other officials who were part of the sanctioning committee. Sandeep Bakhshi, K Ramkumar, Sonjoy Chatterjee, NS Kannan, Zarin Daruwala, Rajiv Sabharwal, KV Kamath, Homi KhusrokhanThe report does not make any allegations against the officials but calls for an investigation into their role.
		+
		+	=== Money for refinancing Videocon loans was against policy===
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F25&entity=Ar01804&sk=27589508&mode=text Neeraj Chauhan, January 25, 2019: ''The Times of India'']
		+
		+	[[File: The Kochhar- Dhoot case, 2008-Jan 2019.jpg\|The Kochhar- Dhoot case, 2008-Jan 2019 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F25&entity=Ar01804&sk=27589508&mode=text Neeraj Chauhan, January 25, 2019: ''The Times of India'']\|frame\|500px]]
		+
		+	Videocon group companies were given loans totalling Rs 1,875 crore, which turned non-performing assets (NPAs), after Chanda Kochhar took charge of the bank as MD and CEO on May 1, 2009, according to an FIR registered by CBI.
		+
		+	Apart from a loan of Rs 300 crore given to Videocon International Electronics Ltd (VIEL) and Rs 750 crore to Videocon Industries Ltd (VIL), other loans given to Videocon group included Rs 175 crore to Millennium Appliances India Ltd (MAIL) on June 30, 2009, Rs 240 crore to Sky Appliances Ltd (SAL) on November 17, 2010, Rs 110 crore to Techno Electronics Ltd (TEL) on November 17, 2010, and Rs 300 crore to Applicomp India Ltd (AIL) on May 30, 2011.
		+
		+	The loans given to SAL, TEL and AIL were for the purpose of enabling them to repay unsecured loans availed by these companies from VIL. A loan was also sanctioned to VIL for refinancing the existing loans of the company, which was against the credit policy of the bank during the relevant period.
		+
		+	“These loans have turned NPAs, resulting in wrongful loss to ICICI Bank and wrongful gain to Videocon group and the Kochhars. The role of senior ICICI Bank officers may also be investigated. ICICI Bank had also released the security available in the form of FDR of Rs 50 crore in the accounts of SAL and TEL without any justification,” the CBI said.
		+
		+	The accounts of Videocon and its group companies were declared NPAs on June 30, 2017. The agency turned its preliminary enquiry (PE), registered in December 2017, into an FIR after it concluded that Kochhar had indeed connived with her husband and Dhoot and there was a “quid pro quo”. TOI had first reported the registration of PE against Deepak Kochhar and Dhoot on March 31 last year.
		+
		+	The CBI’s enquiry had begun on allegations that the Videocon group received loans worth Rs 3,250 crore from ICICI Bank, which were part of Rs 40,000-crore loans the group secured from an SBI-led consortium of 20 banks.

	=Senior management compensation=		=Senior management compensation=

@@ Line 35: / Line 35: @@
 Earlier the leadership training mantle was held by ANZ Grindlays in the ‘90s and to a certain extent by SBI as the industry opened up.
-=The Kochhar controversy =
+=The Kochhar controversy=
 ==2018: CEO Kochhar resigns before probe ends==
 [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F05&entity=Ar00315&sk=D4FE0EC3&mode=text  October 5, 2018: ''The Times of India'']
@@ Line 71: / Line 71: @@
 In a separate move, MD Mallya, who had been nominated director earlier this year, resigned from the board on health grounds.
 =Senior management compensation=

← Older revision		Revision as of 00:03, 10 October 2018
Line 34:		Line 34:

	Earlier the leadership training mantle was held by ANZ Grindlays in the ‘90s and to a certain extent by SBI as the industry opened up.		Earlier the leadership training mantle was held by ANZ Grindlays in the ‘90s and to a certain extent by SBI as the industry opened up.
		+
		+	=The Kochhar controversy =
		+	==2018: CEO Kochhar resigns before probe ends==
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F05&entity=Ar00315&sk=D4FE0EC3&mode=text October 5, 2018: ''The Times of India'']
		+
		+	[[File: 2008-18- The Kochhar controversy.jpg\|2008-18- The Kochhar controversy <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F05&entity=Ar00315&sk=D4FE0EC3&mode=text October 5, 2018: ''The Times of India'']\|frame\|500px]]
		+
		+	[[File: Sandeep Bakhshi.jpg\|Sandeep Bakhshi <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F05&entity=Ar00315&sk=D4FE0EC3&mode=text October 5, 2018: ''The Times of India'']\|frame\|500px]]
		+
		+	Chanda Kochhar, who was consistently rated as one of the world’s most powerful women in business, has resigned from ICICI Bank following months of escalating controversy, and amid multiple investigations.
		+
		+	Kochhar, who headed India’s largest private sector bank as chief executive officer & managing director since 2009, was dogged by allegations of quid pro quo deals with borrowers — notably the Dhoots of Videocon — and was on forced leave since June 18 pending the conclusion of an inquiry by former Supreme Court judge B N Srikrishna.
		+
		+	The ICICI Bank board on Thursday decided to accept Kochhar’s resignation ‘with immediate effect’—bringing to an end her 34 years with the bank—and appointed chief operating officer Sandeep Bakhshi as CEO for five years.
		+
		+	Kochhar’s term, her third, was due to end in March 2019.
		+
		+	While the board accepted her resignation, it did not clear her of impropriety.
		+
		+	“The inquiry instituted by the board will remain unaffected by this and certain benefits will be subject to the outcome of the inquiry,” the bank said.
		+
		+
		+	'''Talk rife of Srikrishna probe not giving Kochhar clean chit'''
		+
		+	ICICI Bank announced on Thursday that the probe against Chanda Kochhar would continue—six months after the board had, many say rashly, “reposed full faith and confidence” in her and stated there was “no question of any quid pro quo/nepotism/conflict of interest” in her decisions.
		+
		+	At the centre of the storm is her husband Deepak Kochhar and his brother Rajiv, and their financial dealings with a number of business groups that received loans from ICICI Bank. Besides, Srikrishna, the CBI, Enforcement Directorate and Sebi have also been looking into allegations of misconduct and corruption.
		+
		+	Kochhar’s exit, which signalled an end to months of uncertainty, sent the bank’s stock up 4% amid an otherwise plummeting market. “We believe the appointment of a new CEO with a fairly long tenure will provide much needed clarity, direction and continuity to the bank,” said Lalitabh Shrivastawa of Sharekhan.
		+
		+	Ever since she was forced to step aside, there’d been widespread speculation as to whether she would wait for the investigation to end and attempt a comeback even if for just a few months. While there was no clear answer on Thursday as to why she chose to finally throw in the towel now, there’s been a growing sense that the enquiry report might not give her the clean chit she would have hoped for. Also, there’s been talk—which this paper has not been able to independently confirm—of Srikrishna broadening the scope of his enquiry to scrutinise a range of lending decisions. To top it all, the last few months have not been easy for top bankers with the RBI denying Shikha Sharma another term at Axis Bank and trimming Rana Kapoor’s tenure at Yes Bank.
		+
		+	Kochhar's resignation relieves her of the code of conduct rules of the bank. Since there was not much of a future left for her at the bank, the exit frees her to pursue other interests. Kochhar was appointed CEO in the aftermath of the global financial crisis. During her tenure in the bank she was seen to have taken several initiatives to improve workplace conditions for women.
		+
		+	Bakhshi, who was earlier MD and CEO of ICICI Prudential Life Insurance, was inducted in June as COO of the bank for a period of five years—which placed him in pole position to succeed Kochhar, sooner or later.
		+
		+	In a separate move, MD Mallya, who had been nominated director earlier this year, resigned from the board on health grounds.

	=Senior management compensation=		=Senior management compensation=