ICICI Bank board on Wednesday came out in support of its Managing Director and CEO Chanda Kochhar, saying it has full faith and confidence in her and described certain reports against her regarding credit disbursement to Videocon group as "malicious and unfounded rumours".
ICICI Bank board also reviewed the bank's internal processes for credit approval and found them robust, the private sector lender said in a statement.
Certain reports have appeared on a website alleging involvement of Kochhar and her family members in a loan provided to Videocon group on quid pro quo basis. It was also pointed out that a complaint had been forwarded to Prime Minister Narendra Modi and others for necessary action against Kochhar.
Concerns were also raised about transactions of Videocon group and NUPower Renewables, a company operated by her husband Deepak Kochhar.
"The board has come to the conclusion that there is no question of any quid pro quo/ nepotism/ conflict of interest as is being alleged in various rumours.
"The Board has full confidence and reposes full faith in the Bank's MD and CEO Ms. Chanda Kochhar," the bank said.
It also said that rumours are being spread to malign the bank and its top management.
With regard to loans to the Videocon group, it said the bank's current exposure is part of a syndicated consortium arrangement.
"ICICI Bank was not the lead bank for this consortium and the bank only sanctioned its share of facilities aggregating approximately Rs 3,250 crore which was less than 10 per cent of the total consortium facility in April 2012," it added.
It further said similar rumours surfaced in mid-2016 and the bank had appropriately responded to them.
As the same rumours have resurfaced again the board reviewed the internal processes and also the details of the exposure to the Videocon group, it said, adding, "It can be concluded that there are adequate checks and balances in loan appraisal, rating and approval processes within the bank, both from the control as well as from a governance perspective."
The bank clarified that none of the investors of NuPower Renewables are borrowers of ICICI Bank.
Shares of the ICICI Bank today closed at Rs 278.40, down 1.94 per cent on the BSE.