The Hindu Business Line : ICICI Bank has sufficient liquidity, says RBI

Mumbai, Sept. 30 ICICI Bank has sufficient liquidity, including in its current account with the Reserve Bank of India, to meet the requirements of its depositors, the RBI said in a statement.

The central bank has issued the statement following reports of depositors withdrawing cash at ICICI Bank’s ATMs and branches.

The RBI is monitoring the developments and has arranged to provide adequate cash to ICICI Bank to meet the needs of its customers at its branches/ATMs.

The bank and its overseas subsidiaries are well capitalised, the statement added.

‘Baseless and malicious’

In a statement, Mr K.V. Kamath, Managing Director and CEO, said, “ICICI Bank is aware that rumours are being repeatedly circulated in certain centres regarding the financial strength of the bank. The bank states that these rumours are baseless and malicious.”

The bank said the absorption of the impact of current market conditions on investment portfolio valuation will not pose any challenge to the bank’s capital position.

It has a capital adequacy ratio of 13.4 per cent as on June 30, 2008, which reflects the healthy capital position and comfortable level of leverage.

The stock on Tuesday, which had suffered heavy pressure on Monday, gained 8.42 per cent on the Bombay Stock Exchange and closed at Rs 534.85 against the previous close of Rs 493.30. On Monday, the share was down 12.11 per cent.

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