Mumbai : Private sector lender ICICI Bank on Saturday said a whistleblower’s complaint alleging incorrect accounting of interest income and non-performing assets in 31 loan accounts of the bank has not been “borne out”, adding that findings of an internal probe will have no material impact on the financial statements for 2017-18 (Apr-Mar). ICICI Bank on Friday said that it had received complaints about 31 loan accounts from an anonymous complainant, on which an enquiry was made and interim report was submitted to the regulator.
“The interim report of the enquiry was reviewed in detail by the audit committee and statutory auditors, prior to finalisation of accounts for the year ended Mar 31,” the bank said on Saturday in a clarification. “Further actions in this matter are being/ will be taken as directed by the Audit Committee,” the bank said in a stock exchange filing.
ICICI Bank’s CEO and MD Chanda Kochhar, who is facing an independent enquiry in connections with loan given to Videocon Group, has decided go on leave till completion of the inquiry.
The bank, in a stock exchange filing, said that in March 2018 it was “made aware” on the complaint which alleged, among other things irregularities in the conduct of some borrower accounts, resulting in incorrect asset classification. The complaint cited 31 loan accounts.
“The complaint was treated as a whistle blower complaint and an enquiry was instituted as per the Whistle Blower Policy of the Bank under the supervision of the Audit Committee of the Board of Directors, without involvement of the senior management other than Internal Audit,” ICICI Bank said.
The statutory auditors were provided periodic updates and their inputs were factored into the enquiry process. The interim report of the enquiry was reviewed in detail by the Audit Committee and statutory auditors, prior to finalisation of the accounts for the year ended 31 March 2018.