RBI steps in to ease worry over ICICI Bank

The RBI stepped in to prevent any large scale withdrawal of deposits from ICICI Bank, the country's 2nd largest bank with Rs 4,84,000 crore of assets, reports HT Correspondent.

The Reserve Bank of India (RBI) on Tuesday stepped in to prevent any large scale withdrawal of deposits from ICICI Bank, the country's second largest bank with Rs 4,84,000 crore of assets.

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The central bank, in a statement, sought to assure depositors of ICICI Bank that there was nothing to worry about the financial health of the bank, after some reports of panic withdrawal of deposits at some locations.

RBI said, “It is clarified that the ICICI Bank has sufficient liquidity, including in its current account with the RBI, to meet the requirements of its depositors. The RBI 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 ICICI Bank and its subsidiary banks abroad are well capitalised.”

ICICI Bank’s managing director & CEO, KV Kamath said on Tuesday morning, “The absorption of the impact of current market conditions on investment portfolio valuation will not pose any challenge to ICICI Bank's capital position.” The bank had Rs 2,34,460 crore of deposits in India as on June 30, 2008.