ICICI Bank falls 5% as ED initiates enquiry in ICICI-Videocon loan

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.

Videocon Industries was locked in lower circuit at Rs 12.45 on the BSE with no buyers were seen on the counter. A combined 999,693 shares changed hands and there were pending sell orders for around 63,871 shares on both the exchanges.

ED has written to the Securities and Exchange Board of India (Sebi), seeking information on the Videocon group. The ED asked for details of the investigation into the group’s activities in the past few years, the Business Standard report suggests, quoting officials.

According to Reuters report, the Central Bureau of Investigation (CBI) has launched a preliminary investigation into the husband of ICICI Bank's chief executive, as well as officials at the lender and at Videocon Group, to assess whether there was any wrongdoing in lending practices.

ICICI Bank