BackICICI Bank audit committee hires law firm to look into bad loans
The media reports say law firm Panag & Babu has been roped in by the ICICI Bank audit committee to look into the bad loans
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New Delhi: The independent audit committee investigating alleged irregularities in 31 bad loan accounts of ICICI Bank has hired a law firm to assist the panel.
"An independent law firm has been appointed by the audit committee," a bank executive said today. He said as the audit committee comprises the bank's independent directors, the bank is not aware of the name of the law firm hired.
According to reports, law firm Panag & Babu has been roped in by the audit committee. When contacted, the firm's spokesperson declined to comment.
ICICI Bank said in June that it had received an anonymous complaint which alleged irregularities with respect to 31 borrower accounts, leading to incorrect asset classification.
The audit committee of the board of directors of the bank has three members chaired by Uday Chitale, Dileep Choksi (alternate chairperson) and Radhakrishnan Nair.
"Further actions in this matter are being/will be taken as directed by the Audit Committee," the bank had said in a stock exchange filing in June.
All the 31 accounts were classified as non-performing between 2011-12 and 2016-17. ICICI Bank's aggregate loans outstanding on 31 March 2018 were ₹ 6,082 crore ($898 million), about 1.1% of gross loans.
Separately, ICICI Bank's CEO and MD Chanda Kochhar is facing an independent enquiry in connection with loans given to the Videocon group and she has gone for leave pending the completion of investigations
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