Free Press Journal

ICICI Bank shares drop by 6 percent amid Videocon loan controversy


The ICICI Bank is currently surrounded by Videocon group loan controversy and it has now affected it stocks too. The shares of ICICI Bank Ltd went down by 6 percent on Monday, this comes after the CBI initiated a preliminary enquiry to probe if any wrongdoing was during lending money.

According to a report in NDTV, in early noon trade, ICICI Bank’s shares were down over 6 percent at Rs. 260. Earlier, RBI also imposed monetary penalty worth Rs. 58.9 crore on ICICI Bank, for failing to abide by rules on the sale of bonds in the held-to-maturity (HTM) category.

“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. We see pressure in the short term following the fine, allegations and CBI’s preliminary enquiry.” IDFC Securities analysts wrote in a note.