The Reserve Bank of India said on Saturday the financial health of ICICI Bank was sound, in a bid to calm depositors following rumours that the country's second largest commercial bank was hit by liquidity problems due to stock market losses.
Media reports in Gujarat on Friday said ICICI Bank had lost money in a recent stock market fall and was facing liquidity problems, triggering a rush among its depositors that continued into its second day on Saturday.
"It is clarified that the ICICI Bank has sufficient liquidity including in its current account with the RBI, to meet the requirements of its depositors," a statement from the central bank said.
"RBI has arranged to provide adequate cash to ICICI Bank to meet the demands
The benchmark 30-issue Bombay Stock Exchange nearly 4.6 per cent in the past two days after bellwether Infosys Technologies kicked off India's earnings season on Thursday with a dismal outlook.
"These are baseless rumours and there is no truth in this," Kalpana Morparia, executive director at the New York Stock Exchange-listed bank, said.
She estimated that around Rs 60 million might have been withdrawn from the bank's ATMs in Gujarat on Friday.
Shares of ICICI Bank, with assets of almost Rs 1 trillion and behind only to the state-run State Bank of India, ended 2.13 per cent lower on Friday at Rs 130.80.