The Reserve Bank of India (RBI) on Wednesday said it was ‘alive’ to what is happening in the banking sector when asked if the regulator had engaged in any discussion with ICICI Bank, which is in the middle of a controversy following allegations of conflict of interest against its chief executive.
However, the banking regulator refrained from naming the bank. “I think it is not appropriate to discuss any specific bank,” N.S. Vishwanathan, Deputy Governor, said during the post policy interaction with the media.
“But I must tell you we are alive to what is happening in the banking system. And we are dealing with those situations as they are emerging. But I cannot mention what we are doing with a specific bank,” he said.
“As far as too big to fail is concerned, there are global standards and all those principles... we are adopting in India as well,” he said. ICICI Bank is among three Indian banks in the Reserve Bank of India’s ‘too big to fail’ category.
Following charges of conflict of interest against ICICI Bank’s MD and CEO Chanda Kochhar, the bank formed a panel to look into the allegations. Ms. Kochhar has gone on leave till the probe gets over.
The bank had appointed Sandeep Bakhshi as COO and wholetime director on the board for five years. However, the RBI approved his appointment as wholetime director designated as COO for three years, ICICI Bank informed the exchanges.