ICICI Bank is a 'good bank', law will take its course, says interim FM on loan controversy

The government finally spoke on the allegations of conflict of interest involving ICICI Bank CEO and MD Chanda Kochhar and said that the law will take its own course and that the issue is not not a major cause of concern.

"ICICI Bank is a good bank and has robust processes. There is no cause for concern for any stakeholders of the bank," said Finance Minister Piyush Goyal, adding that the charges are being investigated by internal and external committees.

"As far as the law is concerned, the law of the land will take its own course and the processes are already going on both internally in ICICI Bank and externally which will finally come out with their findings,” he added.

This is the first time the finance minister or any senior official from the ministry has officially commented on the matter.

Goyal was speaking to reporters after a meeting with bank chiefs in the financial capital on June 8.

When asked why the government nominee on the ICICI Bank's board was not attending any of its meetings, he said he would not know about that particular meeting and added, "I’ll find it out".

ICICI Bank’s board recently ordered an independent enquiry to look into fresh allegations from an anonymous whistleblower raising concerns over violations of the code of conduct and "conflict of interest" among others at the bank.

Although the bank denied allegations that Chanda Kochhar influenced loan decision to Videocon Group because of their business dealings with husband Deepak Kochhar.