ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion as on March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.
Every thing was going great for ICICI bank untill the news of LEHMAN Brothers broke out . At this point of time things started to change for ICICI bank . People started feeling insecure about this bank and rumours started making rounds of ICICI going to be declared bankrupt . To add fuel to this fire people started speculating that the country's second largest bank had been adversely impacted by the stock market crash this week. By 29 th September 2008 news spread across INDIA like a wild fire . Almost all ATM's across INDIA had people waiting in queues to withdraw money , long queues where even found at 3 am in the morning at hyderabad. Moreover people also complained that they were unable to withdraw cash from other private banks using ICICI bank debit or credit cards. Also they were complains of unable to process online transactions . Unconfirmed news states that around 300 crores rupess has been withdrawn after the spread of this news . Despite repeated advertisements on local radio confirming the sound financial health of the bank, depositors could not be comforted.
As a result of current banking sector scenario people are switching back to nationlised public sector bank such as State Bank of India and State Bank of Hyderabad.
Finally RBI has come up with clarification on ICICI bank financial position and assured the customer that they need not panic . Its expected that after this clarification things will improve for ICICI bank and will end all the rumours that were spread across . Read the post below for further details regarding the RBI's clarification on ICICI bank
http://hydengg.blogspot.com/2008/09/rbis-clarification-on-icici-bank.html
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2 comments:
The rumor looks to be originated from Hyderabad and had impact in that place only. In bangalore there was no problem and there were no queues. So no need to worry. It is just a rumor.
RBI finally came with the clarification
http://hydengg.blogspot.com/2008/09/rbis-clarification-on-icici-bank.html
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