I have mentioned in my previous posts that there is nothing wrong in maintaining deposits with SBI and ICICI bank.
SBI was created by the act of the parliament, and any Government of India - Congress, BJP or even Communists, will allow it to fail. The losses anticipated by me was due to my thinking of inter-relating number of events. I do not have open admission from either SBI management of any losses due to sub-prime nor absolute denial of such losses. I would rate my own anticipation as "guesstimate"
ICICI Bank, India's second largest and most high profile bank, does seem to have large exposure but it appears to be within its capital base. Even if they lose Rs 10000 crores, as estimated by some brokerage (2.6 Billions), their total capital base of nearly $10 Billions may provide sufficient cushion. This bank too may not be allowed to run into troubles by GOI as well as RBI. You need not worry about this bank too.
What is the full name of SBP - is it State Bank of Patiala? for NRI, it is always advisable to keep funds with parent bank like SBI and not its children SBP, SBS (State Bank of Saurashtra) or SBM (State Bank of Mysore)
You need not change the funds to some other banks because at the moment the fear is unfounded. The GOI will never back out of its commitment to depositors to pay the full amount, even if the Deposit Insurance limit is Rs 1 Lakh only. The default risk is minimum.
If you do want to switch, out of excessive fear, use Axis Bank (formerly UTI Bank) or HDFC Bank as one of the alternative. You can open account ONLINE with even ZERO balance.
I do like the nationalized banks, but there is one more risk for persons like NRI. There are lots of frauds committed by bank officials in NRI accounts. I explain to you in continuing post the kind of fraud taking place in NRI accounts.
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