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Monday, Oct 13, 2008
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ICICI files complaint with police

Says certain brokers are indulging in “malicious” rumour mongering

Mumbai: Battered by rumours that cast doubts about its financial health, ICICI Bank on Sunday approached police alleging that certain brokers with a Mumbai-based brokerage house were indulging in “malicious” rumour mongering. Terming it as economic terrorism, an ICICI Bank spokesman said: “We will be approaching all regulators including SEBI on this.”

The ICICI Bank shares have suffered heavy losses in the face of onslaught of rumours though the largest private sector lender has been maintaining that it was facing no crunch and its financial position was strong. In its complaint filed before Economic Offences wing of Mumbai police, as also Coimbatore police, the bank said a broker or sub-broker in Coimbatore was indulging in misinformation through SMS and other means aimed at creating panic among the depositors causing withdrawal of deposits.

ICICI Bank Managing Director K V Kamath has talked to Finance Minister P Chidmabaram about the vested interests who are hammering down the share prices and has also asked SEBI for a proper investigation. “The concerted effort to spread malicious rumours could be new form of economic terrorism (akin to how counterfeit currency is put into circulation to lower the public faith and confidence, and cause national economic interests to be compromised), the complaint said. According to the complaint, one of the SMSs read: “Kindly withdraw all your deposits and cash in account with ICICI Bank as ICICI bank already rushed to RBI for insolvency.” -- PTI

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