Thanks for sharing. I have also seen multiple watsapp messages floating around the same - Its just ridiculous for any one setting up a business to take money from the dubious group of Videocon as loan or equity. I don’t understand that if I am the husband of country’s leading bank’s CEO why would a) I do business in such a convulated manner - read the entire article - so many transactions - selling and buying - I think initially the entity which gave loan became a subsidiary of the entity which it gave loans to etc. - this itself smells of fraud and b) even if the loans were given on merit - given that the quantum of loan is very high, notwithstanding the fact that loan was given as a part of consortium, ICICI bank should have recused itself from the consortium on grounds of conflict of interest.
If I were RBI, I would tell the bank to conduct a board meeting and tell the CEO to step down immediately and appoint someone from HDFC Bank as the head. Since banking is a public service, I would appoint someone from the right culture (Kotak or HDFC) to lead all prominent banks with immediate effect given the amount of rot that is coming to the fore. Akin to military police and court marshals, we need to set up a separate banking police and courts to catch all these theives in banking system who have made a mockery of the system and more importantly public money. Videocon’s track record for wealth creation has been so bad that any banker worth its salt would have even in 2012 would have not given loan to it without taking kickbacks. I was just checking its market cap in 2012 was just 6000 cr (400 cr now) and it is ridiculous that it was able to get 40,000 cr loan on a market cap of just 6000 cr and that ICICI Bank finds 3250 cr as a small amount for this organization.
PS - in case nobody noticed 64 cr on 3250 cr comes to a nice round figure of 2% commission