ID :
22164
Wed, 10/01/2008 - 17:50
Auther :
Shortlink :
http://m.oananews.org//node/22164
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Don't panic, rumour baseless and malicious: ICICI Bank
Mumbai, Sep 30 (PTI) Stung by rumours that it was passing
through a troubled phase, ICICI Bank Tuesday asked its
customers not to panic, saying rumours about the financial
strength of the bank are baseless and malicious.
"ICICI Bank is aware that rumours are being repeatedly
circulated in certain centres regarding the financial strength
of the bank.
"The bank states that these rumours are baseless and
malicious," ICICI Bank C.E.O. and Managing Director K.V.
Kamath said Tuesday.
The statement comes amid reports that the bank's
customers were queuing up before its branches in some cities
particularly in Karnataka and Andhra Pradesh fearing that
ICICI was facing major financial crunch.
Debunking suggestions that there could be a
'run-on-the-bank', ICICI statement gave detailed financial
position to establish that it was in a very sound position
with assets of over Rs 4,84,000 crore and a net worth of over
Rs 47,000 crore.
ICICI Bank's wholly-owned subsidiary ICICI Bank UK Plc,
as part of its normal treasury operations, has a diversified
investment portfolio, Kamath said.
"ICICI Bank UK Plc has zero exposure to U.S. sub-prime
credit, and zero non-performing loans," he said.
About 98 per cent of its non-India investment book of USD
3.5 billion is rated investment grade. In addition, it holds
cash equivalent instruments of USD 1.1 billion.
"As on the last balance sheet date of June 30, 2008,
ICICI Bank UK Plc had a capital adequacy ratio of 17.4 per
cent," he said.
ICICI Bank had few weeks back made an additional
provisioning of USD 28 billion to cover its investments in the
bankrupted U.S. bank Lehman Brothers' senior bonds. This was
in addition to USD 12 million provision previously made.
Kamath said ICICI Bank was profitable. "This was due to
the strong core performance, which more than offset the impact
of adverse debt and equity market conditions in India and
globally since the second half of FY 2008."
"The absorption of the impact of current market
conditions on investment portfolio valuation will not pose any
challenge to ICICI Bank's capital position," he said.
ICICI Bank had a net worth of over Rs 47,000 crore (over
USD 10 billion) and a capital adequacy ratio of 13.4 per cent
on June 30, 2008, as against the regulatory requirement of
nine percent.
"This is among the highest levels of capital adequacy in
large Indian banks. This reflects the healthy capital position
and comfortable level of leverage," he said. "Its banking and
non-banking subsidiaries are also well-capitalised." PTI RHP
DEP
NNNN
through a troubled phase, ICICI Bank Tuesday asked its
customers not to panic, saying rumours about the financial
strength of the bank are baseless and malicious.
"ICICI Bank is aware that rumours are being repeatedly
circulated in certain centres regarding the financial strength
of the bank.
"The bank states that these rumours are baseless and
malicious," ICICI Bank C.E.O. and Managing Director K.V.
Kamath said Tuesday.
The statement comes amid reports that the bank's
customers were queuing up before its branches in some cities
particularly in Karnataka and Andhra Pradesh fearing that
ICICI was facing major financial crunch.
Debunking suggestions that there could be a
'run-on-the-bank', ICICI statement gave detailed financial
position to establish that it was in a very sound position
with assets of over Rs 4,84,000 crore and a net worth of over
Rs 47,000 crore.
ICICI Bank's wholly-owned subsidiary ICICI Bank UK Plc,
as part of its normal treasury operations, has a diversified
investment portfolio, Kamath said.
"ICICI Bank UK Plc has zero exposure to U.S. sub-prime
credit, and zero non-performing loans," he said.
About 98 per cent of its non-India investment book of USD
3.5 billion is rated investment grade. In addition, it holds
cash equivalent instruments of USD 1.1 billion.
"As on the last balance sheet date of June 30, 2008,
ICICI Bank UK Plc had a capital adequacy ratio of 17.4 per
cent," he said.
ICICI Bank had few weeks back made an additional
provisioning of USD 28 billion to cover its investments in the
bankrupted U.S. bank Lehman Brothers' senior bonds. This was
in addition to USD 12 million provision previously made.
Kamath said ICICI Bank was profitable. "This was due to
the strong core performance, which more than offset the impact
of adverse debt and equity market conditions in India and
globally since the second half of FY 2008."
"The absorption of the impact of current market
conditions on investment portfolio valuation will not pose any
challenge to ICICI Bank's capital position," he said.
ICICI Bank had a net worth of over Rs 47,000 crore (over
USD 10 billion) and a capital adequacy ratio of 13.4 per cent
on June 30, 2008, as against the regulatory requirement of
nine percent.
"This is among the highest levels of capital adequacy in
large Indian banks. This reflects the healthy capital position
and comfortable level of leverage," he said. "Its banking and
non-banking subsidiaries are also well-capitalised." PTI RHP
DEP
NNNN
