Reserve Bank of India backs ICICI Bank

On September 30, a statement was released by the Reserve Bank of India (RBI) to clarify the position of India’s ICICI bank stating that it has sufficient liquidity, this also include its current account with the RBI that is said to meet all the requirements of the depositors.

ICICI Bank’s developments are being monitored by the Reserve Bank of India and they have provided adequate cash to meet the demands of its customers at its branches and ATM machines.

It also states that the ICICI Bank and its subsidiary banks abroad are well capitalized. The Indian banking system is well regulated and significantly insulated from global developments. This is due to the fact that it is compulsory for all Indian Scheduled Commercial Banks to retain 34 percent of the deposit base in the form of Government Securities (SLR) and cash with RBI (CRR).

The RBI has also run tight credit practice throughout its Indian Banking system. The net worth of ICICI Bank according to the RBI is over US$10 billion which makes ICICI one of the highest in Indian banking industry.

Source: Rakesh Sah head of Service Quality at ICICI Bank Limited and the Reserve Bank of India.