ICICI Bank India falls to a 52-week low and there are rumours all over the world that says that ICICI is going to follow Lehmann Brothers Inc of USA which is filing for bankruptcy. Also Meryl Lynch has been sold out & AIG has been bailed out by Federal reserve which is a very reason India is also feeling the impact and based on this the stock markets are crashing heavily. Yesterday the markets dropped by 4% and reached at 12456 points which is almost half when compared to year back results.
I just logged into my stocks portfolio summary just to find out that my overall gain/loss is around 54.79% down and i have in total around 85000$ in stocks or 38lakh INR and you can easily assume that iam left with less than half of my investments and there is still nothing to worry about because we invest into stocks with an idea to get returns in the long run and should not think about short term profits/losses because there is nothing to really worry. All the markets are closely linked and if you are always trading you would know that if the US markets are effected in any case Indian markets are also impacted with the same.
Yesterday all over my city – Hyderabad there were big rumours of ICICI Bank India going bankrupt and fears that everyone would lose their money but thats just wrong because a big financial institution like ICICI would not become bankrupt so easily and moreover Indian banking rules are very strict which would mean that the banking institutions would have many investments and funds locked in multiple places making sure that the customers need not worry about their money. Even if a bank goes bankrupt the depositers always get their money back and in this case this is just a rumour and nothing has been claimed by the bank in terms of losses or low performance. Any company if in bankrupt stage would try to control their costs heavily, try to maximise their revenue and get into new strategies but ICICI seems to be continuing their business in the normal way.
First reason why the panic started was because of the ICICI Bank being closed on 29th ie monday and this is because of their Half Yearly Accounts Closing and the schedule is for 30th September too which means the bank would be closed for 3days in a row making people feel there is something suspicious and the rumour of bank bankrupt spread like fire making people visit all the nearest ATM machines and withdraw the maximum money they can though the normal maximum withdrawal per day is 25000Rs only.
You can check out the ICICI Bank website which is perfectly working using which you can transfer/send/recieve funds easily and also search for the nearest ICICI Bank ATM Locations and Bank Branches for more enquiry. You can avail the following services at any ICICI Bank ATM Locations –
* Cash Withdrawal of upto Rs. 25, 000 per day
* Balance Enquiry and Mini Statement Generation
* Deposit of Cash and Cheque
* Funds Transfer
* Pin Change
* Payments
* Cheque Book Requests
Check out the Bank ATM/Branch Locator using this link – ICICI Bank Locater
ICICI Bank Limited clarifies that 98% of ICICI Bank UK PLC’s non-India investm ent book is rated investm ent grade and above
• ICICI Bank UK PLC has zero exposure to US sub-prime credit, whether directly or through credit derivatives such as CDO/CLN/CDS.
• About 98% of ICICI Bank UK PLC’s non-India investment book of USD 3.5 billion is rated investment grade and above (by S&P/ Moody’s/ Fitch). About 89% is rated A- and above (by S&P/Moody’s/Fitch).
• Only about 18% of ICICI Bank UK PLC’s non-India investment book is exposure to the United States.
• In addition, ICICI Bank UK PLC holds cash equivalent instruments (inter-bank placements and certificates of deposit) of USD 1.1 billion. There is no exposure to US banks in this category.
• ICICIBank UK PLC has a total balance sheet size of USD 8.5 billion and has zero NPLs on the balance portfolio of USD 3.9 billion.
• As on the lastbalance sheetdate ofJune 30, 2008, ICICIBank UK PLC had a capital adequacy ratio of 17.4%
In short i personally recommend everyone not to panic on this issue and worry because the current risk amount for ICICI is very less and all your money is safe. Though to be on safe side you can move away the funds to other nationalized banks. There were even rumours of SBI(State Bank of India) Bankrupt but overall rumours are rumours which may be created for getting the stocks down or other reasons. Try to stay on the lowest risks and make sure you dont get into any tensions because they lead to nothing other than suffering. The strict Indian Banking laws always make sure the consumers and investors are always on safe side.
Thanks Amit for Sharing this information with us
Hai Amit
This article will certainly relive panic from Investors..Nice to share 🙂
For more details of ICICI bankrupt
Thanks Amit for this post, You won’t believe that I got a call from my sister that ICICI BANK is bank is bankrupt and they are closed and she started to panic.
Then I made some quick search on Google to find that they hit a 53 weeks low on the stock prices and made some calls on my friends who work with ICICI they assured that there is nothing to worry 🙂
I must say you have really put in a lot of research coming out with post.
all rumours
Just look at the press release from kamath
http://www.icicibank.com/Pfsuser/aboutus/investorelations/pressrelease/icicibank_pressrealease/Release_ICICI_Mr_Kamath.pdf
September 30, 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.
Yes,
All of you are absolutely right.
Please look at http://www.bank-implode.com
They have statistics about the biggest banks in the world.
Will someone from ICICI compare ICICI to Wasthington Mutual. The biggest bank in America.
If the United States had lost the war against Saddam Hussein, the dictator’s revenge could not have more ruthless, his pillage so predatory, his decimation of the public coffers more deliberate, nor would it have been such a wicked betrayal.
Some of the most conservative retail investors have traditionally followed the moves of Warren Buffett once they become public. Many articles have been written about this. Warren Buffett does not rely on blackbox algorithms or chaotic stochastic process models to determine the stocks he buys. His no-nonsense roll-up-your-sleeves-and-invest-only-in-what-makes-sense attitutude made him the richest man in the world as well as one of the most trusted and respected. Today there are many 20 to 40-year-old men named Warren, after Buffett that is.
Buffett completely escaped the dot bomb blow up and is on top of the world now. When countrywide financial was in the throes of collapse, it was the rumor that Warren Buffett was buying in that gave the stock a sharp pop from $15-$19. The rumor was false, and the rally failed. That same week in July 2007, Bear Stearns used the Buffett name for the same purpose, but to no avail in the long run.
So now comes the Treasury Secretary Hank Paulson using Buffett to con the markets into believing his company is safe. Don’t believe it. Goldman Sachs is not safe. But the trick is he’s got to make Buffett buy. How? For that Paulson went personally to Buffett:
Read on here
http://bankimplode.com/blog/2008/09/24/the-great-betrayal/
I really don’t know whether the ICICI bank is going to collapse or not, Infact I am happy with the services they provide.
But I have some points to analyze and they certainly let one doubt it.
1. ICICI bank has doubled his daily average limit for no charges on saving accounts. This is now 10000 Rs. which is used to be 5000 Only.
So why a bank with enough funds need to hold more money in their account?
2. The stocks fall and pull back, it happens, But ICICI is continuously falling. The bank was at 1500 Rs in mid January while its struggling around 540’s now. Yes, there was a pull back of nearly 8.5 % today. But you can see that it has lost nearly 2/3 of itsself in 8 months.
3. The amount lost in Lehman Bros investment is claimed to be nearly $80 million and is comparable to a quarter profit of ICICI bank.
4. Even Lehman Bros. was in profit in quarter 1st of 2008, It was only in the second quarter they actually had to face the severe crisis.
5. A lot of people are withdrawing from the bank. Surely it is going to reduce the bank cash holding and create a more unstable position for the ICICI pppl.
But lets see what happens next, Since Finances are matter of Now.
bye, Anuj Aggarwal
Rumours could be baseless , but in this kind of financial tsunamis all over the world any bank can close the doors without even letting others know . In those unfortunate events we will be left dumb, helpless , just panicing without knowing a bail-out …. So please don’t keep * ALL OF * your investments in a same bank / instument
thx
Our economy need people like you who believe in research and facts rather then rumors. Thank you so much for creating awareness in society.
Thank you to shows us the clear idea about ICICI Bank and anyways bank like ICICI is not possible to get Bankrupt Thanks a lot for your loyal service always and we have faith on ICICI.
You may have seen certain advertisements about ICICI bank in the past few days. We would like to share some important points about the same.
The accountants amongst you will appreciate this simple
axiom ………
**
*Popular quote doing email forwards rounds post Lehman, AIG, Merrill
fiasco…**
There are two sides to a Balance Sheet.*
*Left & the Right (Liabilities and**
Assets respectively.*
*On the Left side there is nothing right.. and on the Right
side there is
nothing left “*
Why spend crores of rupees of our money to release FRONT PAGE quater page advertisements in EXPENSIVE newspapers to discredit “certain rumours”.
By being attention to certain rumours, now you have aroused the curiosity of 75 million readers of the newspapers pushing “Is ICICI Bank bankrupt” amongst the top Google searches. In effect, the bank spent money to spread the rumour further when a simple direct email to its customers would have sufficed……..
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Please forward this to the decision makers…CEO’s
Hi All,
ICICI Bank is gonna SUCK badly.
The rumour that the bank is running out of liquid cash will soon become reality.
Even if we think that it was a rumour there have been lots of ppl who have taken away their money from the bank resulting in a further slump in their liquidity.
And further moves from the bank prove that they are running out of cash…
Like not allowing third party transfers .
ATMs are not stocked .
And bank officials replying to forums saying it is not true.
And the main reason could be that they have lots of investors in ICICI Insurance which are getting affected by the sensex hitting an all time low..
It might have started as a rumour but will definetly become true.
Sincerely,
Gili
ICICI is making money by cheating innocent people ( mainly in credit cards) . YOU CAN WIN TODAY , BUT WITHOUT BUSINESS ETHICS YOU CAN’T WIN TOMORROW. MANY INNOCENT PEOPLE HAVE COMMITED SUICIDE BECAUSE OF ICICI RECOVERY AGENTS. GO TO HELL ICICI
ICICI is making money by cheating innocent people ( mainly in credit cards) . YOU CAN WIN TODAY , BUT WITHOUT BUSINESS ETHICS YOU CAN’T WIN TOMORROW. MANY INNOCENT PEOPLE HAVE COMMITED SUICIDE BECAUSE OF ICICI RECOVERY AGENTS. GO TO HELL ICICI
Is it truth???