2. I had made a call for ICICI Bank Joint Managing Director Chanda Kochhar to give a statement in this context in media to clear doubts regarding the ICICI Bank bankruptcy and was surprised to find a comment by Alpana Killawala, Chief General Manager, ICICI Bank Service Team on my site and same is appended below for the benefit of all. I hope the same will dispel the fear of ICICI bank bankruptcy or collapse which is causing a lot of tension to the people. One can see this statement in comments arena by viewing the link for comments related to ICICI bank collapse India and I take the opportunity to thank Chief General Manager, ICICI Bank, Alpana Killawala for issuing the latest statement related to ICICI bank financial health and thus clearing the doubts in the minds of the people. The statement is appended below:
September 30, 2008
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.Â
Alpana Killawala
Chief General Manager
ICICI Bank Service Team | 09.30.08 - 5:12 pm |
3. On the lighter side Google will also heave a sigh of relief as it was facing tough time by virtue of overload of ICICI bank queries related to its collapse or bankruptcy.
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