Is ICICI going bankrupt [Indians please advice]

I hav just got a phone call from a friend in chennai. There are strong rumors of ICIC Bank going bankrupt in India.
Co-incidentally there is 3 days bank holiday in India ( Sept 30, Oct 1 & 2). There has been long queue of ppl outside ICICI atms yesterday night ( around 1 am). All of them were withdrawing their money.

I am sorry to say, but my knowledge about banking sector in India is lagging behind. I don't have much idea of scenario.
Can someone clear me about the situation? I is safe to keep my money with ICICI right now? Also what is the prospect of my savings incase ICICI goes bankrupt?

 

are you sure
No such rumours I heard..
It is a strong bank..

 

I am sure about the chaos held at ATMs. Right now most of ATMs in chennai are out of cash. I did a quick google blog search and found a lots of posts stating the same
http://blogsearch.google.co.in/blog...US:official&client=firefox-a&um=1&sa=N&tab=wb

I know ICICI is strong organization, but what happened with Merril Lynch and Lehman recently scares me.

I am really expectin some vision on this issue from DP members.

 

To all members at DP, be rest assured that ICICI is not going bust. These are all rumors and have no base.

The bank has just issued a press release clarifying the position.

 

Any link to press release?

 

http://www.icicibank.com/Pfsuser/ab...ank_pressrealease/Release_ICICI_Mr_Kamath.pdf

 

Here's the link to the press release by the bank.

http://www.icicibank.com/Pfsuser/ab...ank_pressrealease/Release_ICICI_Mr_Kamath.pdf


Another press release that was made yesterday on the soundness of the portfolio.

http://www.icicibank.com/Pfsuser/ab...cibank_pressrealease/Release_ICICI_UK_Plc.pdf

Everyone just feel comfortable with the bank. Your money isn't going anywhere.

 

Oh.Gosh..Those Guys are sitting with heavy cash .

NO worries.ICICI wont go just like that..
Although there were rumours like that down in Tamilnadu,the reality is not like that

Anyways I dont have any funds in ICICI..transfered all to HDFC!!

 

why should people believe you ? you work in ICICI ??

 

I am an analyst.

 

Well all people is just telling useless thing. Non of Indian banks directly connected with US banks nor have any investments. It is not possible to go bankrupt. It is only roumers. Just check now their share is going up more then 50 points and doing. Afterall it is India's leading national banks.

All of our moneys are safe and we have no realtion of US banks fails. Don't be panic and stop guess something.

You can also ask it to any share Markets experts.

 

Just a Rumour i think. i have heard alot about this bank.
it wont go anywhere i believe.

 

It can go Bankrupt if too many people withdraw cash. Its called a Bank Run]. and it very bad for banks. This is the pitfall of fractional reserve banking. Banks take your money and loan it out. So in reality they don't actually have enough money to give everyone there balance in cash if there was major bank run. You read more about fractional reserve banking by searching on google or yahoo.

 

Well those things are difference and also in India, Indian banks are controlled by RBI and SEBI which ensure us a pure safety. Also withdrawal limit is set to all accounts so they have no worry even every single people take their withdrawal limit money. This is different things. Also ICICI Bank is not holding control on loan section. Both section are run by two different commite.

 

Thanks everyone for sharing opinion. I am feeling bit relaxed now.

This is what I mean exactly. Why? you and other ppl are transferring their cash from ICICI to other banks?

 

Rumours sucks.
Actually as I mentioned in my first post, the concerned person is my friend in Chennai. The banks are closed for 3 days and all the ATMs of ICICI are out of cash and kinda freezed.

So for now lets try to cut down this rumours. Its creating panic in common public.

 

You're foolish if you think Indian banks have no exposure to the rest of the world and guess what? ICICI does and markets are crashing all round the world. Not to say ICICI isnt safe but if enough people get jittery and remove funds it could fail - as with the many other banks around the world. I'm sure the Indian government has the ability to overcome this though.

 

Rumours can create a self-fullfulling prophecy of a bank run True, happened many times throughout history

 

ICICI's stock is up 12% today.....

Anyway, this is not the first time that such rumors have emerged about ICICI Bank.

ICICI has ample capital, it is a highly profitable company and there is no reason why it should get bankrupt.

Source.