A large number of ICICI customers are rushing to the bank's ATMs to withdraw all their deposits, fearing bankruptcy of the bank due to the rumors that the ICICI was facing a major liquidity problem.

There is widespread panic among customers despite  assurances by Finance Minister P Chidambaram and ICICI bank CEO K V Kamath.

A KPO employee Harsh Vardhan Singh said, "Since I have heard that the ICICI bank is closing down, I have withdrawn my money keeping only limited amount in the account. Recently, many customers thronged ATM centres of the bank to withdraw their money."

Singh further added, "Many ATMs either were short of cash or not functioning properly."

"I have lost confidence in assurances of Chidambaram especially after his frequently changing stands on inflation. I would prefer assurances from Reserve Bank of India or other non-political advisors to the government," said Ravi Rai, who works in a software company in Noida.

No problem

However, the people who understand the economics and having experience of banking hold a different opinion. "The rumours of bankruptcy of the bank and that everyone would lose their money are baseless. Indian banking rules are very strict. Even if a bank goes bankrupt, the depositors always get their money back," said chartered accountant Shanker Aggarwal.

Holding the same opinion, Dhiraj Kumar, a journalist, said, "Though, I am afraid as my all savings are with ICICI bank, but I haven't withdrawn money. I know there is no need to panic."

Pankaj, a manager in a fright company, who is using the current account with the bank on behalf of his company, added, "ATMs and bank are still functioning. You can check out the ICICI Bank website which is working perfectly."