In these febrile times, it doesn’t take much for a bank’s reputation to be questioned. So it has proved for ICICI, India’s biggest private bank.
Heralded not so long ago as a regional champion, its share price fell to a two-year low on September 29, before recovering the following day, amid rumours of poor liquidity, a weak capital base and a vulnerable investment portfolio. With speculation mounting over the bank’s health, some depositors started to withdraw money. ICICI’s chief executive was forced into a public statement dismissing rumours about its financial strength as "baseless and malicious". Just for good measure, India’s central bank and finance minister weighed in too, defending the bank’s position....
