There are so many rumour spreading among people that's ICICI bank got bankrupted and they have no many in there balance sheet. All this rumours are baseless which are increasing panic among Indian people and all rushing to ICICI bank branches and there ATM to take out the money from there account. A bank also said they are aware about that rumours are being repeatedly circulated regarding the financial strength of the bank. These rumours, the bank states, are baseless and malicious.
No one could pinpoint the origin of the rumour but sources said that a mention of the bank going bankrupt had appeared in a vernacular newspaper and that could have triggered the rumour. Meanwhile, Kalpana Morpariya of ICICI Bank said that these were just rumours and the bank was not in any sort of financial problems.
To ally any concern among the bank’s customers, the bank reiterates that:
• ICICI Bank has a very strong capital position, having proactively raised Rs 20,000 crore (about $5 billion) in June 2007, almost doubling its capital base. It has a net worth of over Rs 47,000 crore (i.e. over $10 billion) and a capital adequacy ratio of 13.4% at June 30, 2008, as against the regulatory requirement of 9.0%. This is among the highest levels of capital adequacy in large Indian banks. This reflects the healthy capital position and comfortable level of leverage. Its banking and non-banking subsidiaries are also well-capitalised.
• ICICI Bank has consolidated total assets of over Rs. 484,000 crore (over $105 billion), which is diversified across a wide range of asset classes in India and overseas.
• ICICI Bank is profitable. It made a profit after tax of Rs. 4,158 crore (over $900 million) in FY2008 and Rs. 728 crore (over $155 million) in the first quarter of this year. This was due to the strong core performance, which more than offset the impact of adverse debt and equity market conditions in India and globally since the second half of FY2008.
Recent Post
Support :
Creating Website | Johny Template | Mas Template
Copyright © 2011. MY Blog - All Rights Reserved
Copyright © 2011. MY Blog - All Rights Reserved
+ comments + 1 comments
Hi,
I wrote a few posts about the rumours that have been going on - and I got a standardized response from ICICI Bank. I do feel, however, that there is something amiss here. In January, there were reports that ICICI has credit derivative exposures of over $2.2bn, and in March we learned that their Mark to Market losses were in excess of $260mn. We haven't heard any more information about their final position vis-a-vis their Mark to Market losses. This is strange, given that capital markets have worsened considerably since March. If indeed, ICICI feels that there is nothing to worry about, it should come out and share its current MTM position.
I *do not* think that that depositors need to be worried, and there is absolutely no reason to start withdrawing from your checking account. There is no chance that ICICI Bank will collapse - the regulator wouldn't allow it. However, that doesn't mean that the shareholder shouldn't be cautious, and expect some additional MTM losses.
Read more about my response to ICICI's standardized statement here: http://www.moneyvidya.com/blog/response-from-icici-bank-to-my-post-fresh-rumours-icici-bank-collapse-imminent/
Gautam Kshatriya
gautam.kshatriya@moneyvidya.com
http://www.moneyvidya.com/blog
Disclaimer: This comment, or anything else on MoneyVidya.com should not be taken as investment advice. This comment and all other articles on MoneyVidya.com/blog are opinions of the authors themselves. I do not hold any positions in ICICI Bank.