ICICI Bank Ltd. admitted that it has been in contact with the U.S. Securities and Exchange Commission over the bank's loan impairment provisions amid reports that the bank was being investigated over its loan practices.
The bank said July 27 that it has responded to requests by the U.S. SEC about matters "related to the timing and amount of the bank's loan impairment provisions taken under U.S. GAAP." ICICI Bank noted that it has complied with all requests by the SEC's investigatory staff for information about the the lender's loan impairment process.
ICICI Bank was responding to a media report that the U.S. markets regulator questioned bank officials about the way loans were serviced, provisioning details and recovery dates, among others. The SEC is reportedly looking into the bank's accounting practices, particularly related to loans disbursed between 2010 and 2016. The bank allegedly delayed provisioning in at least 31 accounts to beef up its profit.
In response to inquiries by the U.S. regulator, ICICI Bank has been reviewing the valuation of securities on bad loans that were disbursed in the last five years in order to fix loopholes, Mint reported July 30, citing sources close to the matter.