ICICI - Its Credit Profiles are Fine - S&P (Reuters News)

DocProc

I thought savers with ICICI Bank might like to read the following piece:

ICICI credit profiles are fine-S&P
Fri Oct 10, 2008 3:01pm EDT

Quote: http://www.reuters.com/stocks/quote?symbol=ICBK.BO
(Analysts currently rate the stock a 'BUY')

Profile: http://www.reuters.com/stocks/companyProfile?symbol=ICBK.BO

Research: http://www.reuters.com/stocks/researchReports?symbol=ICBK.BO

MUMBAI (Reuters) - Indian bank ICICI's exposure to the credit crisis is likely to hurt its profits but will not dent its credit profile, rating agency Standard & Poor's said on Friday after a sharp drop in the bank's share price. [nBMA001575]

"The credit fundamentals of the bank are fine. The risks are well within the financial capacity of the bank," said Ritesh Maheshwari, senior director of Asia financial institution ratings for S&P, told Reuters, reading from a statement prepared by the rating agency.

"The exposures and the risk would probably cause some dip in profits, but it is not something that would pressure its credit profile."

(Reporting by Narayanan Somasundaram; Editing by David Cowell)

This News article was taken from: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLA71596120081010

DocProc

Accordingly, this is on my list for £50,000

http://www.icicibank.co.uk/

HiSave 1 Yr Fixed Rate Account: 7.21% AER

HiSave Easy Access: 6.16% AER

Swipe

Rather you than me. While there are rumours floating around in India about ICICI being in trouble I'd definitely give it a wide birth. In these troubled times, any hint of a rumour can snowball into a full blown bank run within days.

http://www.ibnlive.com/news/rumours-hammer-icici-bank-stocks-customers-panic/75554-7.html

fishpond

I have broken out in cold sweats, I have panicked.
Yesterday when the icici site went down I was not happy.
But in the cold light of day, icici is part of the compensation scheme and there are many more indians than icelanders.
So my money is staying put, as compared with english financial institutions, it is openly transparent & my money is no worse off there than in an english bank.
So to all the scaremongers out there

---

:beer:

Swipe

fishpond wrote: »

But in the cold light of day, icici is part of the compensation scheme and there are many more indians than icelanders.

The number of Indians is irrelevant as it will be the FSCS that will be paying out 100% and not the Indians. With the current backlog in the FSCS you could be waiting long time indeed for your money. No doubt that you would get it all back eventually but not really worth the extra worry and uncertainty IMO every time the web page is slow to respond.

fishpond

Funnily enough, I trust icici far more than I do the english banks.:rotfl: :rotfl:

EalingSaver

Swipe wrote: »

The number of Indians is irrelevant as it will be the FSCS that will be paying out 100% and not the Indians. With the current backlog in the FSCS you could be waiting long time indeed for your money. No doubt that you would get it all back eventually but not really worth the extra worry and uncertainty IMO every time the web page is slow to respond.

Swipe, but surely that is the point? ICICI UK is UK incorporated, fully covered. In the event of a disaster (which does NOT seem to be in the offing), the precedent therefore is NOT IceSave, but rather KE, Heritable and B&B. i.e. FSA goes in, decides its in/going to go in to default, finds another home for its deposits, covers the IOUs by a loan. I posted a longer thought on ICICI on another thread, but have no idea how to put the cross link in here. But in summary, I don't see this is any more risky than any other UK bank.

Andrew64

Here's your cross-reference:

http://forums.moneysavingexpert.com/showthread.html?t=1209471&page=7

meatandtwoveg

Andrew64 wrote: »

Here's your cross-reference:

http://forums.moneysavingexpert.com/showthread.html?t=1209471&page=7

I'll start with a statement. I have/had (pick as appropriate) money with IceSave and KE. Substantive amounts but below the protected limits. My OH also had money (her entire liquid savings) in IceSave. I also have some currently stuck in the ether somewhere between KE and my linked account. I also have money with ICICI, and so do my parents.

ICICI UK is a fully incorporated UK company. It does not operate under the passport scheme, it is covered by normal FSCS protection scheme. Therefore in the event of a meltdown, the obvious model and precedent is what happened with KE, Heritable, B&B. Note reference to B&B. i.e. its in the same situation as any other UK bank which goes belly up. In other words the FSA steps in, declares it in default, moves it to a new owner, covers the liabilities with a loan. Nasty, but manageable.

ICICIs parent is the largest retail bank in India. Thats a big country and a big bank. If the Indian govt. allowed the home bank to go t***s up a la Landsbanki there would be anarchy in India. A country not known for its reticence for its people to get out on the streets.

The ratings agencies have issued statements regarding the status of ICICI. This is in contrast to Landsbanki and Kaupthing which had their ratings downgraded a couple of times, and ineed in contrast to B&B which had its ratings downgraded to one level above junk. ICICIs share price has dropped, but even that drop is smaller than that sufferred by many UK banks in the last week or two. As far as I know (though I hvae NOT checked) the ruppee has not gone into free fall as the Krona did.

Does this mean that disaster at ICICI Inida is not in the offing at some point? Who the hell knows. My point is this. Where else are you going to put your money which is any more guaranteed/safe than ICICI UK? At this rate, on every twitch in the market, people are going to shuffle their money from the latest target to another, only to repeat the exercise a week later.

Does this make me complacent? I don't think so - I certainly don't feel complacent, and I've had a torrid week. Reading these latest threads makes me very concerned that UK savers are about to create a run on ICICI UK. I'm just reassurring myself that the percentage of people who have money in ICICI UK and read these boards is hopefully small.

Edit:
P.S. I should add, everyone should of course do what they want. And I fully understand the emotion of 'pulling money back'. I post this up in the hope it will provide another view/contribution.