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

[Technocrat]

another one

DICGC

April 26, 2007

DICGC gives further relief to bank customers:
amends Policy to repay joint account holders

The Deposit Insurance and Credit Guarantee Corporation (DICGC) has reviewed its policy for settlement of claims of joint account holders in the event of liquidation of a bank. As per the revised policy the deposits held in two separate joint accounts in combination of say "A" and "B" and "B" and "A"; will now be treated as two separate accounts, and each category of the joint account will be eligible for a claim upto Rs. one lakh. Similarly, a joint account of "X", "Y" and "Z" will be treated as different from the joint account of "Y", "Z" and "X" or "Z". "X" and "Y", for the purpose of settlement of claims and claims in each category account will be paid upto Rs. one lakh. The policy has been revised in response to representations received from affected depositors. Often husband and wife having independent source of income maintained joint accounts for operational convenience. The revised policy is expected to bring relief to depositors who maintain such accounts.

It may be noted that deposits of all banks are insured upto Rs. one lakh. The DICGC pays insurance claims of depositors upto Rs. one lakh in the event a bank is taken for liquidation. So far, DICGC used to settle the claims of all joint accounts in "the same capacity and the same right" upto Rs. one lakh, for all combinations of the same set of depositors. This meant that joint accounts of "A" and "B" and "B" and "A" in the same bank were treated as one account and the claims were settled for only upto Rs. one lakh aggregating the balance in both accounts together. Thus, if a husband and a wife having independent sources of income opened two joint accounts for operational convenience as "A" and "B" and "B" and "A", their claim was payable only upto Rs. one lakh.


(A.B. Balwatkar)
Press Release: 2007-2008 General Manager

[Zappo]

I am watching this space since morning. I think its time now we put a stop to it.

I am attaching two Press Releases. The first one is by RBI.


The second one, and much more elaborate of the two, is by Mr. Kamath. Its in PDF format though.
Release_Kamath.pdf

I hope this gives you guys some solace. Stop spreading baseless rumors please. Its such irresponsible act of a collective unison that causes even the strongest of boats to sink.

ICICI is a Manipal based bank, the PSU banks provided a bailout package to ICICI recently but it was so hush hush that even the FM did not get to know about it... Please. Stop this now.

[mmmjgm]

Originally Posted by Spitfire

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

Hi Spitfire,

No, your outstanding is an asset of the bank, that will be bought over/taken over by another nominee/buyer.

You would need to continue paying your EMIs.

Had it been a pvt lender going belly up, then maybe there would have been some optimism.

Cheers.

[BaCkSeAtDrIVeR]

Originally Posted by Zappo

ICICI is a Manipal based bank, the PSU banks provided a bailout package to ICICI recently but it was so hush hush that even the FM did not get to know about it... Please. Stop this now.

Huh?

Zappo, you quoting the rumours? Or making a statement? ICICI is NOT Manipal based.

ICICI was initialy a statutory corporation - the Industrial Credit and Investment Corporation of India. It later (durign the days or de-regulation) promoted a bank, named the ICICI bank, and later the ICICI merged with the ICICI bank to form one of the biggest banks in India.

BTW, this is one for the Mods.

I saw this thread in the morning; but clicking on the link said that I have no permission to view the thread. A search did NOT show this thread. Now, this is back here. What happened?

Also, can we remove the word "bankruptcy" from the thread title? This thread will be around for ever, and having the word there will do more harm than good.

Originally Posted by Spitfire

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

No. If the bank goes bankrupt, it will go into liquidation / receivership; and the procedure for recovering money due to an entity in such a situation is more drastic than the normal courts. You will be in trouble.

[Zappo]

Arre yaar, I was only quoting some ridiculous rumors I read on this thread. Some great guy suggested that ICICI bank belongs to the same group from Manipal that ran another Manipal based bank and it went belly up. Another CIA field operative wrote that ICICI was apparently bailed out by a consortium of nationalized bank but it was never made public. I guess they just sent him a report about it.

I hate rumor mongers who seem to have no better work but to start spinning yarns at the very first chance. This latest thing began here in Hyderabad since yesterday night. By 11 pm the situation was so grim that some ATMs had miles long queue. And I saw some jokers standing around the KPHB ICICI ATM and happily adding more mirch masala to it all. And some weak kneed types were buckling down then and there. One lady was literally wailing yaar! And the sadist standing next to him (not in the queue but was only spreading rumors) was telling how he has heard that Kamath and party have run away leaving ICICI to sink. Felt like giving one of those rumor mongers one chamaat. There should be a law against which such people can be booked.

And now I find that some of us here are also carrying on in the same vein. Please guys. This kind of rumor mongering does not help any cause.