ICICI Bank Ltd has shed over ₹19,066.46 crore in market value in the four trading sessions beginning Monday.The stock closed 2.8% lower at ₹271.15 on Thursday, nearing a three-month low, and fell 2.8% from its previous close. It has lost over 11% in the last four sessions and nearly 13% year to date.
The Central Bureau of Investigation (CBI) registered a preliminary enquiry against ICICI Bank CEO Chanda Kochhar’s husband Deepak and businessman Venugopal Dhoot to investigate alleged conflict of interest in a ₹3,250 crore loan made by ICICI Bank to Dhoot’s Videocon group. ICICI Bank had extended the loan as part of a ₹40,000 crore loan by a consortium of 20 banks in 2012.
Securities and Exchange Board of India (Sebi) has also asked ICICI Bank to clarify on reports of alleged corporate governance breach.The bank declared resigned supreme court judge B.N. Srikrishna would head the request and appointed Sandeep Bakhshi as the chief operating officer for a five-year term.
Goldman Sachs has expelled the stock from its conviction list on proceeded with uncertainity around its CEO and result of visibility around succession planning for the CEO role.
We see the recent development as an essential advance to address a key worry that has been a headwind to the stock as of late. The bank is making some agonizing changes in its advance portfolio which has slowed development drove by vast acknowledgment of bad loans, move towards better rated corporates as well as building a granular retail and SME business funded by a solid low-cost liability franchise.