Do not panic: RBI, FM to ICICI customers

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New Delhi/Mumbai, September 30:: The Finance Ministry and the RBI on Tuesday came together to debunk rumours casting doubts over the financial strength of country's top private sector lender ICICI Bank, which on its part asked customers and shareholders not to be swayed by speculations.

At the same time, market regulator SEBI asked investors not to panic and said it was closely monitoring the situation in the backdrop of a global financial crisis.

ICICI Bank also sought a probe by SEBI and the government against what it termed a conspiracy by market manipulators to hammer down its share price.

After hitting a two-year low yesterday with fall of 14 per cent amid rumours that its exposure to global crisis could hit its financial position, ICICI Bank shares rebounded on Tuesday with a gain of close to five per cent by mid-session on the Bombay Stock Exchange.

Talking to reporters in the national capital, Finance Minister P Chidambaram said that RBI has assured depositors about ICICI Bank's well-capitalised position, while adding that all Indian banks are "well capitalised and regulated".

Earlier in the day, Reserve Bank stepped in to stem the tide following the run-on ICICI Bank in some parts of the country, saying that the private lender has sufficient liquidity and was well capitalised.

Demanding a probe in hammering down of its shares, ICICI Bank Managing Director and CEO K V Kamath said, "Finance Minister P Chidambaram shares our concern... he is very supportive."