ICICI Bank loses top M-cap slot

Font Size

Print

Feedback

Email

Discuss

Related Articles

Green energy attracts global players'Millionaires to rise in India despite slowdown'3 banks raise non-resident deposit ratesCentre sends out 11.5% rate signal

New Delhi, Sep 19: Leading private sector lender ICICI Bank, which has lost its position as the country’s most valued bank to state-run SBI, on Friday said that “malicious rumours” are being spread to hammer down its share price. “We are seeing malicious rumours completely without any basis at all and done in a consistent manner...so clearly there is something much beyond just banking in this,” ICICI Bank chief K V Kamath told a private TV channel.

“We are clearly seeing concerted short-selling activities... We do not know who is responsible for this,” he added.

ICICI Bank’s share price has plummeted by nearly 15% or more than Rs 100 per share in the past ten days. Thursday, ICICI Bank’s market value dipped below that of public sector major SBI. Its market capitalisation has dipped to near Rs 64,000 crore, against close to Rs 1,00,000 crore for the public sector banking major SBI.

Referring to the health of the ICICI Bank, Kamath said, the bank has a capital adequacy ratio of 13.4% and having doubled the capital last year has not increased the operations by the same proportion.

“After raising capital last year, we have not increased our balance sheet significantly... We have not grown for the sake of growing the book. Having doubled out capital we have not doubled our books. The growth of the book has been moderate,” he said. As regards future strategy, he said, as long as Indian companies continue to globalise “we will judiciously look at the opportunities.”

Answering questions on the impact of global financial crisis, Kamath said the Indian financial system is secured and equipped to cope with what is happening in the rest of the world. “We are greatly insulated and lot of strength is inbuilt into the system”, he added.

Referring to investment by its UK subsidiary, Kamath said, bulk of the money is invested in papers of commercial banks in the line with the regulatory requirements.

Wherever the investments are worrisome, he said, “We make a disclosure of them. We have invested in banks with good credit rating.”