The first information report filed in the ICICI Bank-Videocon Group loan case alleges a conflict of interest on part of ICICI Bank’s former Chief Executive Officer Chanda Kochhar, but it also casts a far wider net. The Central Bureau of Investigation, in its FIR, said that it may investigate members of various credit committees at ICICI Bank. The list includes the whose who of Indian banking, including veteran banker KV Kamath and current ICICI Bank CEO Sandeep Bakshi.
The lower the loan value you can automate the process based on scoring, but as the loan value becomes bigger you cannot reduce it to a formula. It is the individual [bank’s] bespoke decision, while there is general guidance from the RBI for credit appraisals and what considerations should be made before approvals.R Gandhi, Former Deputy Governor, Reserve Bank of India
The RBI can call on the minutes of these meetings if required but does not scrutinise them on a regular basis.
Is more active supervision of credit committee decisions needed?
No RBI supervisor is meant to do micro-management, said S.S. Mundra, former deputy governor at the Reserve Bank of India. “It is ridiculous to expect the RBI to look at every decision and supervise every branch. It is not possible to check all minutes. As with all audits it is conducted on a sample basis,” Mundra said.
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