ICICI bank has been facing a lot of flak in recent times because of whistleblowers filing audits into its non-performing assets and accusing the bank of profit inflation. The company CEO Chanda Kochhar is facing blame for having sanctioned loans to companies which have dealings with her husband’s company, without going through the right procedures.
The bank has already answered for one such complaint before and shown its innocence through an internal audit to the RBI. This is the third time the private bank is having to look into such allegation, and this time it is looking into the matter itself. The CEO has been sent on an indefinite leave as Justice BN Srikrishna along with Control Risk Group, and Luthra and Luthra Law firm, look into the matter.
ICICI itself has launched an independent probe to shut naysayers of its transparency, and given the reins of the investigation to Panag and Babu, a law firm with a white collar crime specialty!
But, is your money safe?
Mostly, yes. None of the financial allegations have been proved against the bank and while many experts find the matter shady, the unproven nature of the claims might remain so. Also, if a bank becomes insolvent, it is still the government that has to bail it out and also rescue the people’s money. However why should take the risk in the first place?
There is no reason to feel safe unless the results of both probes come out and there is no question of such acts happening. For now, one has to just wait and watch how the bank and its CEO comes out of this massive impending mess!