ICICI bank complains about false rumours; two held

ICICI Bank, India's second-largest lender, has filed complaints with the Economic Offences Wing and the Securities and Exchange Board of India against various individuals for spreading rumours of a $1-billion lawsuit against the bank by a US stockbroking firm, which triggered a 3.5-per cent fall in the bank's share price on Thursday.

The bank also sent a statement to the Bombay Stock Exchange saying, "There are baseless rumours circulating in the market through SMS and emails about a lawsuit filed against ICICI Bank in the US. The bank categorically denies any such lawsuit."

The Economic Offences Wing has detained two city-based brokers. Police officials involved in the probe refused to give details.

Sources said the rumour initially appeared on a blog, owned by a Bangalore-based resident, and was sent around by some brokers. ICICI Bank officials said they had tracked down individual rumours and there was a suspicion that they were initiated by persons who sought to gain from a fall in the bank's share price.

One of the mails was forwarded by an individual to contacts in his Google group. The bank has obtained details of the individual, who described himself as an investor and said his information was obtained from a website.

Another chain of emails was traced to a vice-president of a broking firm, who again claimed that his information was based on comments made on a blog. Banks officials said they were investigating the root of the rumours.