This document summarizes a controversy involving loans from ICICI Bank to Videocon group companies. In 2012, a consortium of 20 banks including ICICI Bank provided a Rs. 40,000 crore loan to Videocon, of which ICICI Bank provided Rs. 3,250 crore. Questions have been raised about whether ICICI Bank CEO Chanda Kochhar was aware of her husband's business ties to Videocon when the loan was approved. The document also questions why Kochhar did not recuse herself from approving the loan and whether the credit committee was aware of the connection. It notes one Videocon subsidiary had low sales and profits compared to the large loan amount sanctioned.

1. ICICI Bank & Videocon
Controversy

2. Company Involved -
• Videocon group
• NuPower Renewable Private ltd.
• Supreme Energy Pvt. Ltd.
• Pacific Capital
• Pinnacle Energy Trust

4. Facts :
• 2012 – a consortium of 20 banks led by SBI
provide loan to Videocon group of Rs. 40,000
crore
• Out of which, ICICI bank provide 3250 crore
and in 2017, 2810 crore has declared as NPA

5. Questions which the bank hasn’t provided
clear answers
• Was ICICI Bank boss Chanda Kochhar aware about
her husband Deepak Kochhar’s joint venture with
Dhoot when the company’s loan proposal came to the
bank?
• Was the 12-member ICICI Bank credit committee,
which decided in favor of the Videocon loan, and
the lender's board aware about the Kochhar-Dhoot
connection?

6. • If yes, why didn’t Kochhar recuse herself from a credit
committee that decided on a loan to the Videocon Group
in 2012?
• One of the 5 companies in the Videocon group , Evans
Fraser which was co – obligor to the ICICI bank loan in
2012, had net sales of 75 crores in 2011 & net profit of 94
lakh
• There was 650 crore loan sanctioned against the collateral
of Evans Fraser which was close to 9 times its total sales

7. Impact on share price of ICICI bank

8. ICICI Bank Statement :
“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,"