"The media coverage and public scrutiny of our business practices, our board of directors, key management personnel, policies and actions have increased significantly over the past few months," said the bank. “We cannot be certain how these investigations will end and it is possible that the conclusions of our independent investigations plus any regulatory actions could lead to more negative publicity.”
The bank stressed upon the adverse impact that the rising negative coverage is having on its business. “Negative rumours have been previously circulated about our financial position which resulted in concerns being expressed by depositors and higher-than-normal withdrawal levels for a few days.”
While the bank came under SEC’s scanner earlier this month, Securities Exchange Board of India (SEBI) issued a show-cause notice to Kochhar and the Bank in May 2018. The bank is in the process of responding to the allegations. The Central Bureau of Investigation (CBI) also initiated a preliminary enquiry against various individuals and firms including unknown officers and/or officials of the bank.