Business   

ICICI Bank has sufficient liquidity: Reserve Bank

— PHOTO: PTI

ANXIOUS CUSTOMERS: People line up at an ICICI Bank ATM in Hyderabad on Tuesday for withdrawal and balance check, after reports of bank’s biggest losses on overseas investments.

MUMBAI: The Reserve Bank of India on Tuesday clarified that ICICI Bank had sufficient liquidity, including in its current account with the apex bank to meet the requirements of its depositors.

“The Reserve Bank of India is monitoring the developments and has arranged to provide adequate cash to ICICI Bank to meet the demands of its customers at its branches and ATMs,” the RBI stated. “ICICI Bank and its subsidiary banks abroad are well capitalised,” the RBI added.

The financial position of ICICI Bank is sound and the rumours, repeatedly circulated in certain centres regarding the financial strength of the bank, are baseless and malicious, bank Managing Director and CEO K. V. Kamath said here on Tuesday.

“The absorption of the impact of current market conditions on investment portfolio valuation will not pose any challenge to the bank’s capital position,” Mr. Kamath said in a release.

The bank reiterated that: ICICI Bank has a strong capital position, having proactively raised Rs. 20,000 crore in June 2007, almost doubling its capital base. It has a networth of over Rs. 47,000 crore and a capital adequacy ratio of 13.4 per cent at June 30, 2008, as against the regulatory requirement of 9 per cent. “This is among the highest levels of capital adequacy in large Indian banks. This reflects the healthy capital position and comfortable level of leverage. Its banking and non-banking subsidiaries are also well-capitalised.”

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Indian stock market safe: FM
ICICI Bank has sufficient liquidity: Reserve Bank
RIL-RNRL case: Power Ministry to back NTPC
Jessop mulls public offering
Current account deficit soars to $10.7 b in first quarter
Slow fund flow to impact markets
Leyland-John Deere venture for backhoes, four-wheel loaders
HSBC buys further stake in Investsmart
Polaris to acquire SEEC of U.S.
Novatium Solutions launches Navigator
Advinus ties up with Ortho-McNeil for drug discovery
New Collection Logan launched
Bullion Rates
Consumer price index up 2 points
Sundaram Finance hikes deposit rates
SAIL inks MoU with L&T for power projects
Hyundai launches LPG version of Santro
IndiGo to add 14 new flights
Yes Bank launches Money Monitor
Satyam BPO gets interim CEO
RBI, SEBI remarks lift Sensex

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu