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ICRA may not downgrade ICICI Bank
April 16, 2003 17:02 IST
Credit rating agency ICRA is unlikely to revise its rating for ICICI Bank, but said it has 'taken note of the recent pressure' on the bank following panic withdrawal by depositors in some parts of Gujarat and Mumbai.
ICRA's decision on ICICI Bank comes days after other rating agencies CRISIL and CARE decided to retain their earlier ratings.
ICRA had earlier assigned highest safety 'LAAA' rating to ICICI Bank's debt programmes, 'MAAA' rating to its fixed deposits and 'A1+' on its certificate of deposits.
The run on the bank in some parts of the country triggered off speculation that the ratings might be revised.
However, ICRA sources said that the ratings would not be affected as the bank was having a strong financial position, which was endorsed by the Reserve Bank of India last week.
"ICRA has taken note of the recent pressure on ICICI Bank towards deposit withdrawals in Gujarat and parts of Mumbai city. To meet the pressure, ICICI Bank had made necessary arrangements," the rating agency said in a statement.
However, ICRA said the bank's direct exposure in capital market was 'not significant' in relation to its overall size.
"The loans against equity portfolio of ICICI Bank are also not large and as a practice, the bank covers these exposures with adequate margins and thus this does not pose any significant risks to the financial position of the bank," it said.
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