We'll take rumours head-on: Kamath

Brimming with confidence that the “worst is behind” it, ICICI Bank on Monday said it would not let its guard down and vowed to take any rumour-monger head on through legal options at its disposal.

“The worst is behind us, but we will remain vigilant and any rumour-mongering would be dealt with accordingly,” the country’s top private sector lender ICICI Bank chief K V Kamath said.

A day after ICICI Bank filed a police complaint against people believed to have been behind the rumours casting doubt over its financial health, Kamath said, “We will talk to the Finance Minister, RBI and other regulators probably today to brief them about the situation.”

 

After a heavy battering of its share price over the past few weeks, including a 20-per cent plunge on Friday in the midst of an onslaught of rumours against it, ICICI Bank shares today bounced back sharply and gained nearly 25 per cent.

“Our position has been vindicated that vested interests were working against the bank, but the most heartening part is that context have been found to everything,” Kamath said, adding that global rating agencies Moody’s and Standard and Poor’s (S&P) have also vindicated our stand by saying that the bank’s credit fundamentals continue to remain strong.

“The government, RBI and Sebi have re-assured their support by standing behind us... This has helped us in a great way,” he noted. “Absolutely” was the answer given by ICICI Bank’s Joint Managing Director and CFO Chanda Kochhar when asked if the day has turned out to be bright for the bank, given a sharp rebound in its share price after a battering for days.

“Day after day, rumours have continued to spread, whether it was about our UK subsidiaries, our investments or exposure to the global financial crisis... Now everything has been contextualised,” Kochhar said.

When asked what was her biggest fear now, she said, “I do not believe in apprehensions and fears... It is our performance that would speak for us... But we’ll have to guard against any rumours that may come in our way.” Kamath re-assured that the bank has no liquidity problem.