New Delhi: ICICI Bank stock has also been hit hard with the market rife with rumours about the bank being in trouble.
Worried customers began withdrawing their savings from the bank even after assurances from the Reserve Bank of India (RBI) and the bank management.
As the Sensex bled on Friday, ICICI Bank's stock plunged 26 per cent. SEBI chairman spoke to Network18 gave an open answer when asked about ICICI Bank stock.
"I don’t have any specific answer to that question except that whenever any complaints are made to SEBI about any manipulation in the stock we do investigate and the same thing will be done with regard to any specific stock as well," CB Bhave, Chairman, SEBI, said.
Bhave's statement added to the panic and ICICI Bank responded quickly to control the damage.
ICICI Bank Joint Managing Director and CFO Chanda Kochhar reassured the customers.
"We have adequate rupee liquidity given the current circumstances. And not just rupee, even in our international operations we have sufficient liquidity. We have a liquidity of Rs. 12,000 crore in our international subsidiary. We do not use out rupee fund to fund the growth of our international operations," Kochhar said.
ICICI has been in the spotlight since the US subpime crisis unfolded earlier this year. But on Friday even Union Finance Minister P Chidambaram assured that money in banks is safe.
"We assure depositors that the deposits are safe. I say that because our banks are well regularised, well regulated. There is no need to worry about deposits," Chidambaram said.
But with panic ruling the markets, even assurances were not enough and it takes more than that to bring confidence back.
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