I was kidding, really.
I thought I was clear in my post that I.C.I.C.I’s liquidity issue was only a rumor, but I guess the bank didn’t interpret it that way. Somehow they found my blog and submitted the following statement of reassurance:
“October 13, 2008
Dear Sir/ Madam,
We greatly value your relationship with us. In the context of the developments in the international financial markets, we thought it pertinent to bring to you our perspective of the prevailing situation.
We would like to bring to your attention that the Indian banking system is well regulated and significantly insulated from global developments. This is because it is mandatory for all Indian Scheduled Commercial Banks to retain 34% of the deposit base in the form of Government Securities (SLR) and cash with RBI (CRR). Besides, sound policies of RBI have ensured prudent credit practices in the Indian Banking system.
The Bank is already compliant with the BASLE II requirement in respect of risk management practices and capital adequacy. At 13.4%, The Bank has one of the highest capital adequacy ratios in the Indian banking industry. Last year, The Bank raised Rs. 20,000 crores (US $ 5 billion) of equity capital, which almost doubled our equity capital base. We have a net worth of over Rs. 47,000 crores (US$ 10 billion), again one of the highest in the banking industry in India We have consolidated total assets of over Rs. 4,84,000 crores (over US $ 105 billion), which is diversified across a wide range of asset classes across retail, wholesale and rural banking.
The Bank is amongst the most profitable banks in India. In FY 08, The Bank made a profit of Rs. 4,158 crores (US$ 900 million).
The Bank has the highest credit ratings in the Indian financial sector. We have AAA ratings for our instruments, such as senior bonds, subordinated bonds, and deposits. We have the highest foreign currency bond ratings assigned to any Indian bank from Moodys and S&P.
We continue to invest in growth, indicating our confidence in the opportunities in the Indian market. In 07-08, The Bank added 650 new branches, taking the total strength to over 1400 branches.
We thank you for reposing trust in us over the years. We look forward to setting new benchmarks in service levels in India and to create a bank that you will continue to be proud of.
Sincerely,
Office of Head Service Quality”
*Shares have begun to rebound after the false news finally subsided. The Indian Reserve Department reiterated their support and similar to other institutions, the bank has lowered lending rates and increased savings rates.
finding rickshaw. 