The Telegraph
Since 1st March, 1999
Email This Page
RBI spikes rumours on ICICI Bank

April 12: A day after ICICI Bank ATMs were besieged by customers in Gujarat on apprehensions that the bank was facing liquidity problems, the Reserve Bank stepped in to scotch the rumours.

Both the RBI and ICICI Bank issued statements that the bank had enough money and rumours that triggered the withdrawals were baseless.

This seemed to have a cooling effect on customers. “Everything is under control now,” a spokesperson for the bank said. He added that the bank has decided to remain open for the next two days, Sunday and Monday.

However, earlier in the day, the panic spread to Mumbai and Delhi where anxious customers queued up before the ATMs.

The RBI clarified that ICICI Bank’s financial position was sound and the bank has sufficient liquidity 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 the branches and ATMs,” the RBI said.

ICICI Bank too “reassured” its depositors that there has been no change in its financial position. “The bank is a completely solvent and a profit-making organisation,” the bank said.

In Gujarat, panic withdrawal continued at all ICICI Bank branches this morning. But soon depositors realised that the bank was not facing any problems.

Email This Page