STOCK MARKET BSE NSE

ICICI Bank shares fall after police probe over Videocon loan case, RBI fine

Sentiment was also negative after the central bank fined the country's largest private-sector lender 589 million rupees for not sticking to certain rules about sale of government securities.

Published: 02nd April 2018 10:53 AM  |   Last Updated: 02nd April 2018 10:54 AM   |  A+A-

A municipal worker walks past a logo of ICICI Bank at its headquarters in Mumbai October 25, 2013. | Reuters

By Reuters

Shares of ICICI Bank Ltd plunged nearly 5 percent to a five-month low on Monday after the Central Bureau of Investigation (CBI) launched a preliminary investigation to assess whether there was any wrongdoing in the bank's lending practices.

Sentiment was also negative after the central bank fined the country's largest private-sector lender 589 million rupees ($9.05 million) for not sticking to certain rules about sale of government securities.

ICICI Bank's shares were down 4.4 percent at 266.1 rupees as of 0404 GMT after declining to 265.10 rupees, their lowest since late October.

The police launched a preliminary inquiry about two months ago into Deepak Kochhar, the husband of the bank's CEO, Chanda Kochhar, and officials at ICICI Bank and Videocon Group, Reuters reported on Saturday, citing sources.

"While this fine will not have a material impact on earnings, it is negative on sentiment because other banks seem to have interpreted the rules correctly," IDFC Securities analysts wrote in a note.

"We see pressure in the short term following the fine, allegations and CBI's preliminary enquiry," IDFC Securities adds.

Indian stock markets were closed on Thursday and Friday for holidays.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp