Jefferies' equity analysts in a research note have said that ICICI Bank could face class action suit and a settlement if formal charges of corruption are filed.
ICICI Bank could face a class action suit in the United States (US) if charges of wrongdoing are established in the Videocon group loan case, broking firm Jefferies has said, according to a report in Business Standard.
Moneycontrol couldn’t independently verify the report.
The Income Tax (IT) Department and Central Bureau of Investigation (CBI) are currently investigating alleged allegations of impropriety by CEO Chanda Kochhar involving loans worth Rs 3,250 crore given in 2012 by the bank to the Videocon Group.
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ICICI Bank has, however, denied the allegations as “malicious and unfounded”. The bank’s Board of Directors also said in a statement last week that there was “no question of any quid pro quo, nepotism, conflict of interest” in lending decisions and no executive had the ability to influence credit decisions.
In a research note, equity analysts with Jefferies, Nilanjan Karfa and Harshit Toshniwal have said that any formal corruption charge could lead to the bank facing class action suit and a settlement, the report suggests, adding that American Depository Receipts (ADRs) are about 24 percent of all shares at the bank.
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A class action suit is legal action brought in by a person or people, on behalf of themselves and a much larger group, seeking action.