(a) whether the ICICI bank have sought the intervention of RBI in order to overcome
from liquidity crunch recently;
(b) if so, the details thereof;
(c) whether ICICI disbursed excessive amount to the real estates and housing sector;
(d) if so, the reasons therefor;
(e) whether RBI has insisted that all its guidelines be followed by banks to avail
its help;
(f) if so, the details of its guidelines; and
(g) the steps taken by the Government to help the ICICI in this regard?
THE MINISTER OF STATE IN THE MINISTRY OF
FINANCE AND COMPANY AFFAIRS (SHRI ANANDRAO VITHOBA ADSUL):
(a) and (b) In order to meet the anticipated extra demand of funds at branches and ATMs in
Gujarat and certain other centers and also in view of the bunching of holidays ICICI Bank
Ltd. had requested Reserve Bank of India (RBI) on April 12, 2003 for temporary liquidity
support as a measure of abundant caution. RBI had provided Special Coliateralised Liquidity
Facility amounting to Rs. 809 crore against the collateral of Rs. 850 crore (face value) of
Government of India securities on April 12, 2003. The entire amount has been repaid by ICICI
Bank on April 16, 2003. Further, RBI had clarified through a press release on the same day
that ICICI Bank`s financial position is sound and it has sufficient liquidity, including in
its current account with the RBI, to meet the requirements of its depositors.
(c) and (d) ICICI Bank makes housing loan disbursements in the normal course of its retail
business, primarily to individuals for buying residential property. There exposure to real
estates is within the RBI norms.
(e) and (g) All the banks, including the private sector banks, are required to follow RBI`s
guidelines. Government does not intervene in the day-to-day operational matters of the banks.