MUMBAI:
ICICI Bank has warned domestic and international shareholders that the bank faces reputation risk and regulatory action. It has highlighted the ongoing investigations into allegations relating to its CEO
Chanda Kochhar as a risk factor. Meanwhile, the RBI has approved the appointment of Sandeep Bakhshi as chief operating officer reporting to the board of the bank.
The country's largest private bank on Monday filed its annual report, both for Indian and international investors. The balance sheet under US GAAP was filed with the Securities Exchange Commission (SEC) to comply with listing requirements for the bank's American depository receipts (ADRs).
In another unrelated communication to the stock exchange, ICICI Bank said that it has received a notice from Sebi for delayed disclosure on May 18, 2010 of its deal to acquire Bank of Rajasthan. The notice appears to be part of an ongoing probe into insider trading in shares of Bank of Rajasthan ahead of the merger. In its US filing, the bank informed the regulator, "We have recently experienced negative publicity with respect to the allegations levelled against Ms Kochhar and her spouse leading up to her leave of absence."
The filing states that the audit committee of the bank under direction given by the board of directors has instituted an independent enquiry, headed by a former Supreme Court judge, B N Srikrishna, to consider various allegations relating to Kochhar.
