There was indeed a rumour yesterday, a rumour so strong that it took the FM and RBI chief to give public statement negating that rumour. That followed with statement from ICICI Management too.
While I accept this as a rumour, the proverb says portion of a rumour may be true. That is to say, the financial health of ICICI Bank is not as strong as it was before, especially after the falling of Lehman etc.
Although ICICI is next to SBI in India, they indeed took some levereged position in the financial institutions that fell off in the financial turmoil in US. Though ICICI is not down and out, they were indeed hurt. That is why the stock has been beaten down so heavily. The last quarter result of ICICI was pretty poor in comparison to SBI and HDFC.
Lets hope that, because of the strict regulations, the Indian Banking industry isn't hurt as much as the US banks.
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