Financial Tsumani
Rampage, Carnage, Bloodbath.. all that on global markets as country after country falls. The cancer of the mortgage meltdown has subsumed banks in UK,Germany, Belgium, Iceland. And let me not be not be melodramatic, but ICICI Bank Ltd lost 12% in a single day on the Indian bourses. Its lost a staggering 65% and is at its 52 Wk low. And and, heres what I read on a blog about ICICI's health..
"At the same time there has been a rise in the Gross NPA from 4850 Crs to 8350 crs. This increase is more important for the bank and its valuation as retail assets account for around 60% of the bank’s assets. However the market did not react strongly to this important change as it is hidden in the Balance sheet. The NPA have increased further in the current quarter. In addition the provision are around 55% of Gross NPA. So there is still an exposure of around 3500 Crs, which could hit the P&L in the future"
If Washington Mutual, Wachovia could capsize, technically so can ICICI. Anyways what matters is all our money in ICICI and other Indian Banks. I did some research and found that RBI offers only up to Rs 1 Lakh as insurance against deposits in one bank. So those of you who are financially challenged and have no clue whats happening... simple, keep a very tight vigil on your hard earned money in whichever bank it is. Coz Mother India will only return Rs 1 Lakh, if misfortune french kisses you.
"At the same time there has been a rise in the Gross NPA from 4850 Crs to 8350 crs. This increase is more important for the bank and its valuation as retail assets account for around 60% of the bank’s assets. However the market did not react strongly to this important change as it is hidden in the Balance sheet. The NPA have increased further in the current quarter. In addition the provision are around 55% of Gross NPA. So there is still an exposure of around 3500 Crs, which could hit the P&L in the future"
If Washington Mutual, Wachovia could capsize, technically so can ICICI. Anyways what matters is all our money in ICICI and other Indian Banks. I did some research and found that RBI offers only up to Rs 1 Lakh as insurance against deposits in one bank. So those of you who are financially challenged and have no clue whats happening... simple, keep a very tight vigil on your hard earned money in whichever bank it is. Coz Mother India will only return Rs 1 Lakh, if misfortune french kisses you.
Labels: The Lal Street
1 comments
Ouch!!!!!!!! i have no money in no banks either in India or US......should i heave a sigh of relief???? ;DDDD
yes..i am commenting on company's time and dime........ :d
(it's my lunch time and look at my devotion to your blog...i had to come over and say a quick hi....will call u SOON, PROMISE!) :)
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