Every bank’s lifeline is depositors and they should do all they can to assure them that their deposits are put to good use and promise a reasonable return.
Recently, we have see almost all banks take too much risk with the depositors money and or have over leveraged irrationally the deposits and their credibility.

ICICI bank is the first lasrgest private bank in India and is alleged to be at risk to the subprime mortgage mess of the west.

Depositors in the south have queued up to the local branches and are withdrawing their money and so are investors fleeing the stock.

Top management, instead of playing lip service should come out and do the following immediately.
1) Assure the investors by way of investing their personal wealth in common stock in open markets. They should do this as soon as this monday (oct 13th 2008).
2) They should openly come out clean on their total risk investments in CDOs, CDSs. As of now, they are only saying that their expossure is very little compared to the liquidity they have.
This type of assurance is of no use and market will continue to punish the common stock. They have to come out clean on their MTM accounting details and the price they are assigning to these risky derivatives.
3) They should also tell us, if they have any expossure to Iceland’s crisis.

I have been shouting at ICICI bank’s lack of clarity on their MTM model of reporting losses. Now is the time, they have to come clean. More they sleep on this, more the common stock is going to sink.
This coming monday could be a bloodbath, if they continue to delay and pay lip service.