The statement from ICICI bank mangement side published in ET............
ICICI Bank has no defaulting customers in its foreign operations, said joint MD Chanda Kochhar. She said the bank's foreign arm has lent to subsidieries of strong Indian companies like Reliance Industries, L&T, and Birla group companies. Therefore, she said the bank will not feel any impact of global meltdown. Also, all the loans are fully secured by assets. She said most of the assets taken as securities by the bank have cash flow and it has also taken shares of promoters as securities to safeguard loans. She added that the foreign operations have no negative bearing on the parent ICICI Bank. The UK subsidiary has a capital adequacy ratio of 17%. It has a cash balance of Rs 12,000 crore. So, ICICI Bank UK is not dependent on its parent ICICI Bank to meet its obligation. She said due to good credit profiles of its subsidiaries, the credit rating agencies like Moody's and S&P's have assigned stable outlook in their ratings. Total business of the UK subsidiary is $9 billion and and that of Canadian one is $4.5 billion. She said foreign subsidiaries are well capitalised and in good shape. She further assured the depositors that their money is safe with the bank. Kochhar said the bank has enough liquidity to meet its requirements. As the new reduced cash reserve ratio will be implemented from Monday, the bank will have an additional liquidity of Rs 2,500 crore. On rumour that the bank's insurance business partner UK-based Prudential PLC is withdrawing, she said it is baseless. Meanwhile, Prudential CEO Mark Tucker issued a statement denying any such move and termed the rumour as "absolutely unfounded". "India is one of the cornerstones of our Asian growth strategy. Our JV with ICICI Bank is highly productive and value enhancing. We are in India for the long term. Our commitment to India and our partner remains immense," Tucker said in a statement.
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