Yes you are right that ICICI bank has a model, which is very risky and more importantly completely unregulated even RBI does not know anything about the same as fed was unaware of US legends.

Derivatives are weapons of mass destructions and ICICI is sitting on the same. I think ICICI could be the next one to die....

ICICI bank is running very big risk on account of derivatives it has bought for its clients. If market does not improve, i afraid ICICI will fall down on its mouth....

I go back to 18th september 2007, when fed started the series of interest rate cuts to boost the liquidity in the system and felt that move followed by fed is to dwarf the correction in the market, which is necessory for any market to be sustainable. The same story is being followed by real estate player by keeping prices artificially high level thus not allowing the correction. I think that this will compund the problem and will hit hard later on as we have seen in the case of US credit market....

Yesterday (i.e. Wednesday), some of the semi-urban branches of ICICI Bank in Tamil Nadu faced practically - run, in banking terms - which, I am told, was shown in some Tamil channels. However, there was no such panic in Metros, and hence saved the situation. Yet, many customers, especially small savings bank account holders are withdrawing SURPLUS balance in their accounts so as to safeguard themselves. It is high time that the Finance Ministry and RBI sit up and seriously consider the situation....