The Life Insurance Corporation of India (LIC), which holds about a 9.4 per cent stake in ICICI Bank, and the government’s new nominee on the private lender’s board have called a meeting of the bank’s top management this week. This comes against the backdrop of the recent developments in the ICICI Bank-Videocon case and declining investor confidence.

Mumbai: The board of ICICI Bank Ltd, which less than two weeks earlier expressed full faith in chief executive officer Chanda Kochhar, is divided over whether to ask her to step down as federal authorities investigate allegations of impropriety over loans made to Videocon group, people with knowledge of the matter said.

At least some outside directors are opposed to Kochhar continuing in her role, according to the people, who asked not to be identified as the information is not public.

Global financial messaging cooperative Swift today said Icici Bank has become its first Indian client to go live with an improved cross-border payments service. The announcement of the service, which Swift claimed as being more transparent, comes weeks after the discovery of one of the largest banking frauds to be detected in Indian history, the Rs 12,900-crore Nirav Modi scam at the Punjab National Bank (PNB).

ICICI Bank and its management run the risk of a class action suit in the United States of America (USA) if charges of wrongdoing in giving loans are established, according to US broking entity Jefferies.

Indian investigative agencies are probing alleged links between the bank's chief executive officer, Chanda Kochhar, and the Videocon group.

Mumbai: Chanda Kochhar, managing director and chief executive of ICICI Bank Ltd, has pulled out of the annual session of the FICCI Ladies Organisation (FLO), scheduled for 5 April.

Kochhar was to be the guest of honour at the session, where she was to be felicitated by President Ram Nath Kovind.

The ICICI Bank stock posted its biggest single-day drop in nearly three years amid the ongoing investigations into its lending practices.

Shares of the country’s third-largest lender closed at Rs 261.9, down Rs 16.5, or 5.93 per cent on the BSE, the most since August 24, 2015. The market valuation eroded by Rs 104.52 billion to Rs 1.68 trillion on the BSE.

ICICI Bank hit five-month low, down nearly 5% on the BSE after the media reports suggested that the Enforcement Directorate (ED) has started an enquiry into the Rs 32.50-billion loan sanctioned to the Videocon group and others by ICICI Bank, which was part of a consortium of lenders.

The stock of private sector lender was down 4.6% to Rs 265.40 on the BSE in early morning trade, its lowest level since October 24, 2017. On comparison, the S&P BSE Sensex was trading 0.13% higher at 33,011 points at 09:38 am.

ICICI Bank chairman MK Sharma on Thursday read out a statement largely reiterating the line taken by the bank’s board on Wednesday, adding that managing director and chief executive officer Chanda Kochhar had made all necessary disclosures while sitting on the credit committee that sanctioned loans to the Videocon group in 2012.

ICICI Bank’s board on Wednesday came out in support of its Managing Director and Chief Executive Officer Chanda Kochhar and quashed the allegations of favouritism while describing certain reports against her regarding credit disbursement to the Videocon group as “malicious and unfounded rumours”.

The bank’s board also reviewed its internal processes and exposure to the Videocon group, the lender said in a statement to the bourses.

When the sole dissenter on a stock that has 50 buy recommendations ratchets up his bearish call with a “buyer beware” warning on the whole industry, you sit up. When the stock in question is ICICI Bank Ltd., which on Monday had to downsize an initial share sale of its securities business amid lackluster demand, you take notice.

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