ICICI Bank Restoring Faith In Corporate Governance Case Solution

1. Chanda Kochhar’s main conflict of interests are as follows:

• She approved loans of high value to Videocon Group, between 2009 and 2011. The bank was always a source of finance for Videocon (owned by Venugopal Dhoot), however, due to its underperformance, ICICI’s credit rating for Videocon was low.

• After receiving these loans, Videocon finalized a deal with NuPower Renewables Pvt. Ltd., a company that belonged to her husband, Deepak, and Dhoot.

Kochhar did not disclose the relations of her husband with Dhoot, hence she did not disclose her conflicts of interest during these transactions.

It can be alleged that the loans being transferred to Videocon were on the basis of the relationship between Dhoot and Kochhar’s husband. Dhoot was also the owner of Supreme Energy Pvt. Ltd., and Deepak’s partner at NuPower Renewables. A series of share transfers took place between Supreme Energy, NuPower, and Pacific Capital, which was also owned by Kochhar’s relatives.