Do ICICI Bank Really Bankrupt News ?
The stories are going on that ICICI Bank may go Bankrupt. No one knows the sources of these stories, but there have been serious losses reported by ICICI Bank .
Total reported losses of around 4 billion Rupees loss by Indian Banks collectively, 75% of those losses have been taken by ICICI Bank i.e. 3 billion Rupees have been lost by ICICI Bank alone - this news appears to form the basis of the rumors going around about the ICICI Bank going Bankrupt.
ICICI Bank Share price have gone down by a whopping14 percent on Monday trading.The country’s largest private lender, ICICI Bank, On Monday said that 98 per cent of its UK arm’s non-India investment book is rated investment grade and above. The bank’s share on Monday fell to a two-year low on the domestic bourses even while other front-line lenders including HDFC Bank and the State Bank of India were trading over 30 per cent above their yearly lows.
ICICI Bank said that its UK subsidiary, which was in the news a few days ago over concerns about its investments in the instruments of the bankrupt Lehman Brothers, has no exposure to the US subprime credit. The subsidiary’s non-India investment book has been estimated at $3.5 billion, and about 89 per cent of those investments are rated A- and above by Standard & Poor’s, Moody’s and Fitch.
“Only about 18 per cent of ICICI Bank UK PLC’s non-India investment book has exposure to the US. The bank has a total balance sheet size of $8.5 billion and has zero non-performing loans on the balance portfolio of $3.9 biilion,” an official statement by ICICI Bank said.
A panic-selling in the counter saw the ICICI scrip drop 12.11 per cent to close at Rs 493.90 on the Bombay Stock Exchange (BSE). The shares touched an intra-day low of Rs 483 and have lost nearly 60 per cent of its value over the past eight months.
This has led to serious “mail-rumors” running around across the various IT industry workers. Few weeks back, when Lehman declared Bankruptcy, people queued up at ICICI Bank ATM and Bank Branches to withdraw their money. Now again, the IT employees are getting worried on these rumors. The biggest cause of concern is that most of the employees are having their Salary account with ICICI Bank. That will mean that majority of the liquid earnings of the employees will be kept with this bank.
Along with the ICICI officials, everyone hopes that this circus of rumors should come to an end. Savings bank account holders may not worry, as government will guarantee the return of their money in the savings account. In the past, around 4 years back, the GTB or Global Trust Bank had gone burst. It was later taken over by the OBC bank, a government run bank and all the savings account money was safe.
Meanwhile, Kalpana Morpariya of ICICI Bank said that these were just rumours and the bank was not in any sort of financial problems.The bank was sending money to some of the ATM centres that had reported shortage of cash, she said
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[...] The stories are going on that ICICI Bank may go Bankrupt . No one knows the sources of these stories, but there have been serious losses reported by ICICI Bank .[Continue Reading] [...]
A strong rumour that ICICI Bank has gone bankrupt sent several depositors rushing for ATMs to withdraw money late on sunday night .
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