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
* 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.