ICICI Bank's response to Economic Times story dated September 13, 2009

September 13, 2009




Certain malicious and motivated news items have been planted in a section of the media raising doubts on the quality of the portfolio sold by the bank to ARCIL.

A newspaper carried a baseless article on September 13, 2009 suggesting that the Institute of Chartered Accountants of India (ICAI) has asked the Reserve Bank of India to re-audit sale of loans by ICICI Bank to Asset Reconstruction Company (India) Limited (ARCIL).

The management has taken a serious note of such attempts and has lodged a complaint to the Economic Offences Wing (EOW) and other relevant enforcement agencies seeking thorough investigation into the attempt.

We would like to state the facts:

1. ICAI has immediately denied the above. ICAI has clarified that the statements attributed to it are “totally incorrect, wrong and completely baseless and as such the same is denied. We also would like to clarify that ICAI has not asked for any central bank audit of assets sold to ARCIL” . ICAI has written to the newspaper and placed its statement on its website www.icai.org

2. The article is grossly inaccurate. The article mentions sale of home loans of Rs. 10,000 crores to ARCIL. The fact is that aggregate sale of home loans by the Bank to ARCIL since inception is less than Rs. 1,500 crores.

3. The article seeks to magnify a Rs. 1 crore fraud committed on the Bank into a major issue. The fraud was in 5 loan accounts where the borrowers had obtained loans on the basis of forged documents. This fraud was detected by the Bank itself as part of its regular monitoring. A police complaint has been filed and the fraud has also been reported to RBI.

The news item appears to be a deliberate and malicious plant aimed at damaging the Bank’s reputation. The Bank is taking up this matter with regulatory and law enforcement authorities.

The bank is committed to protect the interests of its customers and stake holders.

About ICICI Bank:

ICICI Bank Ltd (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country with consolidated total assets of about US$ 102 billion as of June 30, 2009. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s presence currently spans 19 countries, including India.

For media queries, please contact:
Charudatta Deshpande Head - Corporate Communications
ICICI Bank Limited
ICICI Bank Towers
Bandra-Kurla Complex
Mumbai 400 051
Telephone: +91 22 2653 8208
e-mail: charudatta.deshpande@icicibank.com