In banking this week: ICICI Bank-Videocon Group loan controversy raises many questions

Many allegations and questions have been raised after a blog post by a ‘whistleblower’ alleged that Dhoot provided Rs 64 crore to a firm promoted by Chanda Kochhar’s husband Deepak Kochhar six months after Videocon Group secured a Rs 3,250 crore as loan from ICICI Bank in 2012.

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ICICI Bank, its CEO and Managing Director Chanda Kochhar, and Videocon Group and its promoter Venugopal Dhoot, grabbed the all headlines in the banking sector during the week.

Many allegations and questions have been raised after a  alleged that Dhoot provided Rs 64 crore to a firm promoted by Chanda Kochhar’s husband Deepak Kochhar six months after Videocon Group secured a Rs 3,250 crore as loan from ICICI Bank in 2012. The amount was part of the Rs 40,000-crore loan that Videocon Group secured from a consortium of 20 banks led by SBI.

The Central Bureau of Investigation (CBI) on Saturday confirmed media reports that a preliminary enquiry has been registered against Deepak Kochhar and Videocon Chairman Venugopal Dhoot.

Many questions still remain despite ICICI Bank ruling out any conflict of interest. The bank said it has made adequate disclosures and satisfactorily replied to the regulator (RBI) after it intervened in the matter, as indicated by Chairman MK Sharma.

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