Private sector banking heavyweights ICICI Bank and Axis Bank lost a whopping Rs. 13,215 in market capitalisation, an event that follows reports of irregularities in certain areas of functioning.
Shares of Axis Bank feel by a margin of 2.20% on the BSE, closing at Rs. 498.20/share, while shares of ICICI Bank fell almost 6% to close at Rs. 261.90/share. Intraday trading saw shares of ICICI fall as low as 7%.
ICICI Bank’s market cap fell to Rs. 1,68,344.16 crore on the BSE, falling by almost Rs. 10,452.84 crore. Axis Bank’s market cap on the other hand fell by Rs. 2762.83 crore to stand at Rs. 1,27,853.17 crore. The total fall in market cap for both companies was recorded at Rs. 13,215.67 crore.
RBI recently highlighted that poor governance has resulted in the rise of bad loans at Axis Bank, while also recommending reconsideration of a 4th term for MD and CEO Shikha Sharma to the Axis Board.
CBI recently questioned some ICICI officials to ascertain the possibility of a quid pro quo in issuing loans worth Rs. 3,250 crore to Videocon Group, 6 years ago. ICICI MD and CEO, Chanda Kochhar has also come under the lens of investigative agencies over reports of her husband, Deepak Kochhar, having links with Videocon Group Promotor Venugopal Dhoot.
Both the leading banking bosses were summoned in connection with the Gitanjali Gems probe by the Serious Fraud Investigation Office of the Ministry of Corporate Affairs.