ICICI Bank, Axis Bank share prices plunge, together lose Rs 13,216 cr in market capitalisation
ICICI Bank, Axis Bank share prices took a beating amid controversy following reports about alleged involvement of Kochhar and her family members in a loan provided to Videocon Group on quid pro quo basis. Markets regulator Sebi is looking into the matter for any possible disclosure and corporate governance-related lapses.
Shares of ICICI Bank and Axis Bank declined up to 6 per cent on Monday and their total market capitalisation eroded by Rs 13,215.67 crore, amid reports raising concerns about the two lenders. ICICI Bank's scrip tumbled 5.93 per cent to end at Rs 261.90 on the BSE. In intra-day trade, it tanked 7 per cent to Rs 258.90. Led by the sharp fall in the stock, the company's market valuation eroded by Rs 10,452.84 crore to Rs 1,68,344.16 crore on the BSE. The shares of the lender took a beating amid controversy following reports about alleged involvement of Kochhar and her family members in a loan provided to Videocon Group on quid pro quo basis.
Markets regulator Sebi is looking into the matter for any possible disclosure and corporate governance-related lapses.
The CBI has questioned a few officials of ICICI Bank as part of a preliminary enquiry to find out if any quid pro quo was involved in the bank giving Rs 3,250 crore loan to the Videocon Group in 2012.
Shares of Axis Bank fell by 2.20 per cent to settle at Rs 498.20 on the BSE. During the day, it lost 3.31 per cent to Rs 492.50. The company's market capitalisation dropped by Rs 2,762.83 crore to Rs 1,27,853.17 crore.
The decline came amid reports that the RBI has asked the company's board to re-consider the decision to re-appoint Shikha Sharma as its MD and CEO for a fourth term in the wake of concerns over rising bad loans at the country's third largest private sector lender.
"We wish to inform you that the bank's board follows a standard process with regard to senior appointments, and forwards its recommendations to the regulator (to the extent required). This process is currently in progress," Axis Bank said in a statement today.
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