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ICICI Bank blames 'vested interests' for stock plunge

Source: PTI
October 11, 2008 11:43 IST
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ICICI Bank on Friday said its financial position remains strong and 'vested interests' were continuing to hammer down its share price on the bourses.

Noting that there was no cause for panic among its depositors, ICICI Bank's joint managing director and chief financial officer Chanda Kochhar said, "There is nothing like run-on the bank and the company's financial situation continues to be very strong.

"Stressing that ICICI Bank has a strong liquidity position, Kochhar told PTI over telephone from Mumbai that the bank's market value is plummeting because the perception was getting destroyed by rumours.

Asked for comments on the bank's market capitalisation on Friday slipping below its net worth, Kochhar said, "It only means two things -- One, perception is getting destroyed by rumours, so on that my comment would be performance to speak for itself and secondly, we can do as much as possible to clarify the facts.

"Beyond that, we cant do much about rumours. We are here to clarify as much facts as possible," she said, adding that at the current market value, it "only means that it is very-very good investment for people to invest their money".

Asked whether ICICI Bank would cut the interest rates in the wake of RBI's 150-basis points reduction in cash reserve
ratio, effective from Saturday, Kochhar said that interest rate would not be impacted immediately from the banking regulator's move given the current liquidity situation in the market.

Noting that the CRR has been cut basically for setting right the liquidity shortfall in the system that has happened, Kochhar said, "immediately, it would have no impact on the lending rate".

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