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ICICI Bank board clears redemption of 350 unlisted preference shares

Home » Industry ICICI Bank board clears redemption of 350 unlisted preference sharesThe ICICI Bank, however, did not say anything with regard to review of insolvency cases which was part of board meeting agenda for MondayLast Published: Mon, Apr 02 2018. 10 53 PM ISTPTIMonday’s was ICICI Bank’s first board meeting since the controversy over alleged conflict of interest involving CEO Chanda Kochhar and Videocon group broke out. Photo: Abhijit Bhatlekar/MintMonday’s was ICICI Bank’s first board meeting since the controversy over alleged conflict of interest involving CEO Chanda Kochhar and Videocon group broke out. Photo: Abhijit Bhatlekar/Mint

New Delhi: The board of ICICI Bank Ltd approved on Monday redemption of 350 unlisted preference shares of Rs1 crore each and decided to reclassify all kinds authorized share capital into equity.

The bank, however, did not say anything with regard to review of insolvency cases which was part of board meeting agenda for Monday.

This is the first time ICICI Bank’s board met after the controversy over alleged conflict of interest involving its CEO Chanda Kochhar and Videocon group broke out.

Necessary alterations to be carried out in the relevant capital clause of the Memorandum of Association and Article of Association of the bank which would come into effect upon redemption, ICICI Bank said in a filing to stock exchanges.

The alteration will be subject to approval of the Reserve Bank of India (RBI) and members, it said after board meeting. “In view thereof, the board at its meeting held today approved the redemption on the maturity date along with payment of applicable dividend at the rate of Rs100 per annum per share of Rs1 crore each aggregating to Rs35,000 on the preference shares,” the ICICI Bank board said after the meeting.

“The board approved reclassification of authorised share capital which presently includes equity, preference shares and unclassified shares into one category equity shares.”

The bank will redeem 350, comprising of 0.001% unlisted redeemable non-cumulative, preference shares of Rs1 crore each allotted on 21 April 1998 with a tenure of 20 years are due for redemption on 20 April 2018.

Earlier on Monday, ICICI Bank said, “ICICI Bank’s board meeting being held today is a pre-scheduled board meeting convened for review of cases which are before National Company Law Tribunal under Insolvency and Bankruptcy Code, and other routine matters.”

It’s important to note that the boar d has been meeting regularly in the first week of April in the previous years too, to review progress in resolution of large cases, it said.

Last week, media reports mentioned the alleged involvement of Kochhar and her family members in a loan provided to Videocon group on “quid pro quo” basis. Concerns were also raised about transactions of Videocon group and NuPower Renewables, a company operated by her husband Deepak Kochhar.

The Central Bureau of Investigation (CBI) has also questioned a few ICICI Bank officials as part of a preliminary enquiry to find “quid pro quo” involvement in the bank’s issuance of Rs3,250-crore loan to the Videocon Group in 2012.

ICICI Bank’s board, however, has reposed full faith in Chanda Kochhar.

Meanwhile, in a separate filing, the bank said it has not received any communication from the Enforcement Directorate relating to enquiry into the loan to Videocon group.

On Monday, shares of ICICI Bank Ltd fell 5.93%, or Rs16.50, to Rs261.90 apiece on BSE while benchmark Sensex rose 0.87%, or 286.68 points, to end the day at 33,255.36.

First Published: Mon, Apr 02 2018. 10 53 PM IST

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