All Well. Its finally announced that ICICI Bank Bankrupt News is all a Rumor. Nothing to worry
Latest News as on October 1st:
ICICI Bank rallies, says depositors’ money safe by The Times of India
Rumors Spark Run on ICICI Bank – Forbes.com
Is ICICI Bank India Really Bankrupt?
This is a question in every ICICI Bank Account Holder’s Mind today. Such Rumors spread very quick in the Corporate world. Everyone is trying to be safe by drawing their cash from ATM’s, but there is no official statement of bankruptcy from ICICI Bank.
One of my friend from Hyderabad called me last night and asked me to check the video below. He told me that people there are rushing to the ATM’s to withdraw cash from their accounts. There were long queues in front of all branches of ICICI, till about 2 A.M in the morning. People tried withdrawing from all other banks but they too worked for only sometime after which the transaction requests were denied.
Queue at ICICI Bank Hyderabad ATM’s
It seems to be a rumor, but after watching this video, I have taken it seriously and asked myself again – Is ICICI Bank Bankrupt.
httpv://www.youtube.com/watch?v=sYLONP9wkgk
ICICI Bank Dismisses Solvency Fears
httpv://www.youtube.com/watch?v=gNVZSz3jmj8
Post Effect of Lehman Brothers
Check the ICICI Bank Balance Sheet
Check the Below Press Release which state that ICICI Bank Bankrupt News is a Rumor
ICICI Bank’s Financial Position Sound – By K. V. Kamath, Managing Director & CEO
RBI Statement on ICICI Bank’s Financial Position
We should not spread any more rumors and panic unless someone has something concrete to prove it. Nevertheless I think at this point in time of the Current Market Situation after the US Crisis, it is better to be with public sector/govt owned banks such as State Bank of India.
October 1, 2008
Dear Sir/ Madam,
We greatly value your relationship with us. In the context of the developments in the international financial markets, we thought it pertinent to bring to you our perspective of the prevailing situation.
We would like to bring to your attention that the Indian banking system is well regulated and significantly insulated from global developments. This is because it is mandatory for all Indian Scheduled Commercial Banks to retain 34% of the deposit base in the form of Government Securities (SLR) and cash with RBI (CRR). Besides, sound policies of RBI have ensured prudent credit practices in the Indian Banking system.
ICICI Bank is already compliant with the BASLE II requirement in respect of risk management practices and capital adequacy. At 13.4%, ICICI Bank has one of the highest capital adequacy ratios in the Indian banking industry. Last year, ICICI Bank raised Rs. 20,000 crores (US $ 5 billion) of equity capital, which almost doubled our equity capital base. We have a net worth of over Rs. 47,000 crores (US$ 10 billion), again one of the highest in the banking industry in India We have consolidated total assets of over Rs. 4,84,000 crores (over US $ 105 billion), which is diversified across a wide range of asset classes across retail, wholesale and rural banking.
ICICI Bank is amongst the most profitable banks in India. In FY 08, ICICI Bank made a profit of Rs. 4,158 crores (US$ 900 million).
ICICI Bank has the highest credit ratings in the Indian financial sector. We have AAA ratings for our instruments, such as senior bonds, subordinated bonds, and deposits. We have the highest foreign currency bond ratings assigned to any Indian bank from Moodys and S&P.
We continue to invest in growth, indicating our confidence in the opportunities in the Indian market. In 07-08, ICICI Bank added 650 new branches, taking the total strength to over 1400 branches.
We thank you for reposing trust in us over the years. We look forward to setting new benchmarks in service levels in India and to create a bank that you will continue to be proud of.
As a testimony to the above, please find below the clarification given by Reserve Bank of India.
Date : 30 Sep 2008
RBI Statement on ICICI Bank’s Financial Position
There are reports in some sections of the media that based on rumours regarding the financial strength of ICICI Bank, depositors are withdrawing cash at its ATMs and branches in some locations.
It is clarified that the ICICI Bank has sufficient liquidity, including in its current account with the Reserve Bank of India, to meet the requirements of its depositors. The Reserve Bank of India is monitoring the developments and has arranged to provide adequate cash to ICICI Bank to meet the demands of its customers at its branches/ ATMs.
The ICICI Bank and its subsidiary banks abroad are well capitalised.
Alpana Killawala
Chief General Manager
Press Release : 2008-2009/412
Sincerely,
Nazia Sayeed
Office of Head Service Quality
ICICI Bank Ltd.
dear sir/madam,
i would like to say that this is mahtab h khan i have nri saving account in ur bank.
rite now i am in oman i heard something about bankrupt that is true or false.
coz my friend had called me and told about bankrupt.
best regards,
mahtab h khan
+968-98001534
Hello Mahtab,
All that Bankruptcy News that you heard of was all a Rumor as mentioned in the post above.
Don’t worry. You won’t loose your cash.
Dear Sir,
Iam working in Norway and having NRI ACCOUNT in ICICI BANK last 5 year.I have almost more than 5 million in NRI ICICI account.Please advise me shall I visit to India and withdraw all amount, aim very upset now a days…please advise and help..Vijay
Dear Please advice whether we need to maintain balance with ICICI bank or shall we withraw the same .
Please advice whether we need to maintain balance with ICICI bank or shall we withraw the same .
If ICICI Bank actually goes bankrupt, what will happend to the cutomers who have their funds with the bank ??
Reports of rumors about Mumbai-based ICICI’s financial positions have led some depositors to withdraw cash from the bank in some locations. Time and Again, The Officials of ICICI have told that it is a Rumor and just a phase. You don’t have to withdraw your money and move it elsewhere. Your Money is SAFE with ICICI.
Just FYI, This morning Its value declined by 12.92 percent.
This is the mail, I received from ICICI Bank Limited Today;
Dear Customer,
We are aware that you are being misled by numerous malicious and baseless rumors. Many of these are via SMSes. Many of our customers have written in to us expressing solidarity and confidence in our relationship, and have mentioned they have dismissed these rumors, for which we are grateful. Still we know that these rumors may cause you distress and doubts. You are our valued customer and we would not like you to have any of these feelings. So we have now chosen to write to you directly to allay your concerns if any.
You would have seen the categorical endorsement of the soundness of Indian banking as well as ICICI Bank’s sound financial health from the RBI and the Finance Minister. You would have also read about the unequivocal certificate of confidence reposed on us by S&P an independent rating agency of repute. We have categorically and in a transparent manner disclosed that
* We have ZERO exposure, directly or indirectly, to US sub-prime
*
We have 150% more capital than what Banks are required to have, and we are one of the highest capitalized banks in the country
* We have a AAA rating
* We have sound liquidity to meet your needs whenever you need and in what ever amounts you may need
Your bank has grown and achieved its status of pre-eminence due to the patronage and trust you have reposed thus far in us. We have made many an Indian smile with a house, car and every banking need dreamed of by Indians. I am sure nothing factually or otherwise has changed in our relationship that we should let baseless rumors cast doubts in your mind. We once again want to reaffirm to you that the bank you have built and assisted to grow to pre-eminence will be with you day and night. We take pride in serving you and being the bank of your first choice.
We desire and request the continuance of your unwavering trust and relationship. We promise to you that not only your deposits but all your interests are safe and secure with us. In case you need to reach us, kindly write to us at customer.care@icicibank.com.
Sincerely
V. Vaidyanathan
Executive Director
ICICI Bank Ltd
I have a very bad experience with ICICI money2india. I have sent some money to India using Power transfer which usually takes 2-3 business days, It’s almost a month and the money has not yet received the beneficiary. I lost all my patience calling the cutomer care. Looks like they are trying to hold the money stating stupid excuses.
Experience talks!!! Better stay away from ICICI, especially during this financial crunch.
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