STRATEGIC PARTNERS
April 17, 2003
MUMBAI, India -- ICICI Bank has appointed a one-man inquiry committee, headed by former chief justice of India P N Bhagwati, to investigate the run on the bank that resulted in withdrawals of Rs 550 crore ($11.5 million U.S.) between April 11 and April 13.
According to the Business Standard, the run was triggered by rumors that the bank's liquidity was harmed by a market meltdown on April 10. (See related story In India, rumor causes rush on ICICI Bank's ATMs)
The rumour started at Valsad in south Gujarat and later spread to Surat, Ahmedabad, Manipal, Pune, Delhi, Kolkata, Udaypur and even some parts of Mumbai, according to the Business Standard.
Customers started withdrawing money from ATMs following a report in a local newspaper that the bank was folding.
More than Rs 136 crore ($2.8 million U.S.) was withdrawn from the bank's 1,680 ATMs around the country on April 12, far more than the normal daily withdrawal of between Rs 55 crore ($1.1 million U.S.) and Rs 60 crore ($1.2 million).
