India's ICICI Bank shares fall after police probe, RBI fine

Mumbai: Private lender ICICI Bank said it will convene a board meeting on Monday to review cases under the Insolvency and Bankruptcy Code which are before the National Company Law Tribunal along with other routine matters. New Vernon Capital Holdings Ii Llc who had been investing in Icici Bk Ltd for a number of months, seems to be less bullish one the $25.57B market cap company. The Videocon account was declared a non-performing asset in 2017.

"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 statement said, adding that no investor from NuPower Renewables had borrowed from the bank.

Gupta said the data he has gathered from the Registrar of Companies shows that Mauritius-based DH Renewables Holding is now the majority shareholder of NuPower with 54.99 per cent interest. These officials are likely to be from the consortium of banks that lent loans to Videocon Group. "ICICI never gave it loan, but company was benefited", Gupta told ANI.

The CBI is reportedly looking at relevant documents of the transactions for any evidence of wrongdoing.

"In the case of ICICI Securities, valuation was certainly expensive and its inability to [engage in] NBFC activity since it is promoted by a bank was a deficiency in the business model", said Mr. Kejriwal.

"Personal ties between two people do not always result in criminal acts", Venugopal Dhoot reportedly said, terming all the allegations baseless.

The tax department has launched a probe into the finances of NuPower Renewables and those associated with it, the officials said. Dhoot and his Videocon group is being investigated for the bank loans turning into NPAs.

Dhoot claims to know Deepak through his friend and IAS officer, former Maharashtra chief secretary Sharad Upasani.

At 1.11pm, ICICI Bank shares were down 6.20% to Rs261.15 on BSE, while the Sensex was up 0.50% to 33,132.07 points.

On Tuesday, however, the counter staged a partial rally, rising almost 1.7 per cent to Rs 266 levels on the National Stock Exchange (NSE) in intra-day trade. Albemarle Corporation had 74 analyst reports since August 7, 2015 according to SRatingsIntel. The stock of ICICI Bank Limited (NYSE:IBN) has "Buy" rating given on Tuesday, January 16 by Morgan Stanley.

Shares of Videocon Industries also fell 4.97 per cent to Rs 12.42 - the lowest trading permissible limit for the day - on BSE.

Among 7 analysts covering ICICI Bank (NYSE:IBN), 5 have Buy rating, 0 Sell and 2 Hold. The penalty is the highest ever imposed on a bank for a single incident. ValuEngine lowered ICICI Bank from a "buy" rating to a "hold" rating in a research report on Wednesday, March 7th.

However, Mint reports that these issues haven't deterred analysts.

Analysts reportedly believe that these events will not have an implication of the bank's performance.

  • Anthony Vega