Dear Customer,
We are aware that you are being misled by numerous malicious and baseless rumors. Many of these are via SMSes. Many of our customers have written in to us expressing solidarity and confidence in our relationship, and have mentioned they have dismissed these rumors, for which we are grateful. Still we know that these rumors may cause you distress and doubts. You are our valued customer and we would not like you to have any of these feelings. So we have now chosen to write to you directly to allay your concerns if any.
You would have seen the categorical endorsement of the soundness of Indian banking as well as ICICI Bank's sound financial health from the RBI and the Finance Minister. You would have also read about the unequivocal certificate of confidence reposed on us by S&P an independent rating agency of repute. We have categorically and in a transparent manner disclosed that
* We have ZERO exposure, directly or indirectly, to US sub-prime
*
We have 150% more capital than what Banks are required to have, and we are one of the highest capitalized banks in the country
* We have a AAA rating
* We have sound liquidity to meet your needs whenever you need and in what ever amounts you may need
Your bank has grown and achieved its status of pre-eminence due to the patronage and trust you have reposed thus far in us. We have made many an Indian smile with a house, car and every banking need dreamed of by Indians. I am sure nothing factually or otherwise has changed in our relationship that we should let baseless rumors cast doubts in your mind. We once again want to reaffirm to you that the bank you have built and assisted to grow to pre-eminence will be with you day and night. We take pride in serving you and being the bank of your first choice.
We desire and request the continuance of your unwavering trust and relationship. We promise to you that not only your deposits but all your interests are safe and secure with us. In case you need to reach us, kindly write to us at customer.care@icicibank.com.
Sincerely
V. Vaidyanathan
Executive Director
ICICI Bank Ltd
source:- ICICI customer care
Monday, October 13, 2008
Sunday, October 12, 2008
>India readies big bailout measures
NEW DELHI: With liquidity becoming the immediate priority of the government, it is looking at a slew of measures to make more funds available to t
he credit market and there are strong indications that banks may be nudged to lend to companies with a good credit rating.
Official sources told TOI that a further cut in the cash reserve ratio (CRR), a reduction in interest rates and a 'ban' on reverse repo are some of the options being looked at to augment liquidity, while a ban on short selling is also being considered as a way of curbing the markets' bearish sentiments.
A proposal to dilute mark-to-market norms for banks is also being considered. Such a step, which has already been taken in the US, essentially allows banks to pretend that their assets have the same value at which they were bought rather than the current market value. Thus, they are able to avoid providing for any losses that would accrue if they valued them at current levels.
In addition to these measures, banks might be informally told that they should lend to companies with AAA ratings. This, because it would serve little purpose to restore liquidity to banks if they continued to remain wary of lending.
In the aftermath of the global financial meltdown, banks and financial institutions have turned ultra-conservative in lending. "What purpose would it serve if the banks remain tight-fisted," said a bank functionary monitoring the tight credit situation.
The cut in CRR would effectively mean that banks need to maintain a smaller proportion of their reserves with the RBI, thus releasing more funds to lend. Similarly, the central bank foregoing the option of reverse repo would mean that it would not soak up money from the banks, thereby leaving them more funds to loan.
While the two measures are aimed at boosting liquidity, the proposal to cut interest rates is aimed at making credit available to companies at reasonable rates. As inflation rose, the RBI had successively hiked interest rates and though price rise remains an important concern for a government faced with looming elections, the government now strongly favours restoring liquidity.
Some companies have been apprehensive about CRR cuts easing the liquidity situation but inadequate to fund expansion plans. They argued that this would curb the momentum of growth.
While liquidity remains the prime concern, the government clearly feels the need to address market volatility as well. Hence the idea of banning short selling. Short selling means an investors sells of shares he does not possess. It has already been banned in the US, Italy and China in an attempt to check market downslide.
Experts are divided on whether it is an effective measure. Those against it point out that the month-long ban in the US, which has just ended, failed to achieve anything. In fact, they argue, the stocks protected by the ban only become more volatile and some of their prices dropped more sharply than others.
he credit market and there are strong indications that banks may be nudged to lend to companies with a good credit rating.
Official sources told TOI that a further cut in the cash reserve ratio (CRR), a reduction in interest rates and a 'ban' on reverse repo are some of the options being looked at to augment liquidity, while a ban on short selling is also being considered as a way of curbing the markets' bearish sentiments.
A proposal to dilute mark-to-market norms for banks is also being considered. Such a step, which has already been taken in the US, essentially allows banks to pretend that their assets have the same value at which they were bought rather than the current market value. Thus, they are able to avoid providing for any losses that would accrue if they valued them at current levels.
In addition to these measures, banks might be informally told that they should lend to companies with AAA ratings. This, because it would serve little purpose to restore liquidity to banks if they continued to remain wary of lending.
In the aftermath of the global financial meltdown, banks and financial institutions have turned ultra-conservative in lending. "What purpose would it serve if the banks remain tight-fisted," said a bank functionary monitoring the tight credit situation.
The cut in CRR would effectively mean that banks need to maintain a smaller proportion of their reserves with the RBI, thus releasing more funds to lend. Similarly, the central bank foregoing the option of reverse repo would mean that it would not soak up money from the banks, thereby leaving them more funds to loan.
While the two measures are aimed at boosting liquidity, the proposal to cut interest rates is aimed at making credit available to companies at reasonable rates. As inflation rose, the RBI had successively hiked interest rates and though price rise remains an important concern for a government faced with looming elections, the government now strongly favours restoring liquidity.
Some companies have been apprehensive about CRR cuts easing the liquidity situation but inadequate to fund expansion plans. They argued that this would curb the momentum of growth.
While liquidity remains the prime concern, the government clearly feels the need to address market volatility as well. Hence the idea of banning short selling. Short selling means an investors sells of shares he does not possess. It has already been banned in the US, Italy and China in an attempt to check market downslide.
Experts are divided on whether it is an effective measure. Those against it point out that the month-long ban in the US, which has just ended, failed to achieve anything. In fact, they argue, the stocks protected by the ban only become more volatile and some of their prices dropped more sharply than others.
Saturday, October 11, 2008
>Will the G-7 Save the World?
Here is what the G-7 will try to do this weekend:
* Take decisive action and use all available tools to prevent "important" institutions from failing.
* Take steps to unfreeze credit and money markets and ensure that banks and other institutions have broad access to liquidity and funding.
* Ensure that banks and other major financial intermediaries can raise enough capital from public and private sources to re-establish confidence and kick start lending to individuals and businesses.
* Ensure that each country's deposit insurance programs are strong and consistent to assure depositors their money is safe.
* Take action to restart the secondary markets for mortgages and other securitized assets.
If they can do the above things, the crisis should start to end. How quickly it will end and what will be the lingering effects are any one's guess.
Regards
Rish
* Take decisive action and use all available tools to prevent "important" institutions from failing.
* Take steps to unfreeze credit and money markets and ensure that banks and other institutions have broad access to liquidity and funding.
* Ensure that banks and other major financial intermediaries can raise enough capital from public and private sources to re-establish confidence and kick start lending to individuals and businesses.
* Ensure that each country's deposit insurance programs are strong and consistent to assure depositors their money is safe.
* Take action to restart the secondary markets for mortgages and other securitized assets.
If they can do the above things, the crisis should start to end. How quickly it will end and what will be the lingering effects are any one's guess.
Regards
Rish
Friday, October 10, 2008
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