RBI allays fears over ICICI Bank's finances

30 Sep 2008

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The Reserve Bank of India (RBI) has backed ICICI Bank's claim about its financial strength, saying that the country's biggest private bank has sufficient liquidity to meet the needs of its depositors.

ICICI Bank CEO K V Kamath came The RBI statement comes hours after ICICI Bank CEO K V Kamath came out with a statement that the bank and its subsidiaries abroad were well capitalised.
 
''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,'' the RBI said.

''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 central bank said, adding, ''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, the RBI assured the public.

Shares in ICICI Bank rose to be up more than 5 per cent after the statement. They had opened trade on Tuesday down 7.2 per cent at their lowest level in more than two years.

ICICI said on Monday its UK unit had no exposure to the US sub-prime credit and 98 per cent of its non-Indian investment was rated investment grade by rating agencies. Of its total balance sheet size of $8.5 billion, $3.5 billion constituted its non-India investment book, ICICI said.

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