ICICI Bank Bankruptcy News...Rumour?? (EDIT: Yes it was an absolutely baseless rumor)

[GTO]

ICICI has burnt its fingers badly in the recent subprime crisis, there isn't a doubt that their financial standing has been dented. Their local credit is of equal concern what with their policy of giving loans to just about anyone.

Originally Posted by greenhorn

I'm planning to move all my balance to dad's nationalized bank account ( better safe than sorry )

Call me Mr. Conservative but that's exactly what I have been practicing for the last couple of years. Substantial deposits = Only in nationalised banks. And even that is spread out across a couple of different institutions. I'd rather be safe than sorry.

[-GS-]

Icici Bank Ltd has informed the Exchange regarding a press release dated September 30, 2008, titled "ICICI Bank's financial position sound; rumours baseless and malicious: K. V. Kamath, Managing Director & CEO". A copy of the press release shall be available on the NSE website (National Stock Exchange of India Ltd.) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).

[condor]

Keeping one's money in a bank gives two things : a certain small intrest rate, & Liquidity.

By keeping a large amount in my account, I dont really get much returns. Rather invest the same elsewhere, but keep sufficient balance (1 Lac is good) for liquid cash. Else there's always the credit cards to bank on. I dont think we do too many large impulsive purchases to be concerned about not having ready cash for such instances.

[praful]

Surprisingly this is happening only in Hyderabad, most hyderabadi's in my team are informing other about this! I was shocked, but still have faith in ICICI!

But if people keep up with these panic withdrawals ICICI will surely go bankrupt! :x

[NitinGirish]

I wrote to my CFO today. He asked us not to worry regarding this. I work with one of the top five Indian IT company.

[joecherian]

it seems the rumour has been started by TV9 channel.I just saw a press release by ICICI (in rediff) asking customers not to worry as there are no base for all these false info...

[CtrlAltDel]

its a rumour like the one that happened a few years ago.

they did face loss in the UK subsidiary because they had invested heavily in Lehman Bros. thats about it.

today the panic might spread because this being half yearly accounts closing time, as well as RBI's NEFT holiday, one would be unable to transfer funds to another bank.

Please dont panic, nothing would happen.

[filcord]

Originally Posted by evo

Bah. I`m quite sure these are unfounded. Infact it may be time to buy ICICI Stock!

I've just done so. It's a profitable bank. Always move contrary to the herd, when the sheep are stampeding is the time to pick up cheap blue-chip stocks.
I don't know what it is with rumours, but ICICI is a well-run and professionally managed enterprise, it has some of the brightest and most straight-forward management that any bank in India could have.
Nothing is going to happen, except that few people who pick up the stock will make money

[spadival]

Originally Posted by Sam Kapasi

I have heard from an unreliable source that Rakhi Sawant might also be going bankrupt because of the Brothers Lehmann. She had close relations with them.

Hmm.. My sources tell me she had close relations with Fannie Mae actually.

[mav2000]

Well to correct a post which was posted earlier in this thread, the registered office of ICICI Bank is in Baroda. Secondly the bank was started by the government as a financial instituion for Industrial needs, which later started a retail bank and then reverse merged with ICICI Ltd., creating ICICI Bank Ltd., as the single entity. Just because Kamath is from Mangalore/Manipal, does not mean its a Manipal based bank.

Going by this logic, RIL is a Gujarat based company and AV Birla is a Rajasthan based company and Tata should not have gone to bengal at all.

Some people are really upset with the bank saying things like their loans and cards bankrupted people.Llet me put it this way. Each person must know the limit of their own financial abilities. Having a gold card in your pocket is no reason for you to spend indiscriminately. Its important to know how much you are spending on your card and to set your own limits. A card is only means to make payments easier, not a license to overspend. As far as loans are concerned, if you borrow money you must have the capacity to pay back. A lot of people have borrowed for homes and cars, taking into account future income, which may work out most of the times. You cannot blame the bank if that future income fails on you.

This is not a personal post against anybody, but think about it, a person earning 20k a month goes around spending 30-40k every month, and only paying the minimum balance on his card. Its going to catch up with him in a year or so, and then he blames the bank, saying that the rules were not explained to him. If everyone starts thinking the same way we will soon have a credit crisis the size of what they have in America.

On the other hand, this period is a great learning experience for the banks as well, as they are cutting out the excesses in their lending and looking to improve and enhance their checks on credit worthiness before lending, even to existing clients. Most banks have learnt from these excesses and this will go a long way in strenghtening our banking and financial systems and markets.

[car_crazy1400]

Originally Posted by Sam Kapasi

I have heard from an unreliable source that Rakhi Sawant might also be going bankrupt because of the Brothers Lehmann. She had close relations with them.

ROFLMAO, Sam, you have made my day!cheers:

[Spitfire]

If the bank goes bankrupt i dont have to pay my EMI's?

[ASHISHPALLOD]

Originally Posted by mav2000

Some people are really upset with the bank saying things like their loans and cards bankrupted people.Llet me put it this way. Each person must know the limit of their own financial abilities.
This is not a personal post against anybody, but think about it,

I think my post has been exaggerated.
I have no credit cards, no account, no limit, no any financial relation in past and present with this bank.
some banks has given ccards to non capable people and when time came to get cash back, sometimes muscle power used by their agents. this is illegal in good society. bank has ruined its image in public due to some malpractices thats why my quote.

[thiyags22]

These kind of rumours are always targetted on ICICI (by whom??). I think ICICI and other Indian banks do not have the kind of exposure in US to bring them down. Hopefully bank holidays this week will slow-down the panic withdrawal (limited to ATMs) and by next weeks things should be back to normal.

Thiyags

[Technocrat]

btw just found this

ICICI Bank Ltd

Insurance Cover for Deposits

All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The details of the insurance cover in force will be made available to the depositor.