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March 7, 2008 |
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ICICI BANK: Says No Material Exposure to U.S. Sub-Prime Credit ICICI Bank Ltd. has no material direct or indirect exposure to U.S. sub-prime credit, the bank said in a media release after reports of the company losing US$264 million on account of the sub-prime crisis. According to ICICI Bank, the widening of credit spreads in the international markets have resulted in a negative mark-to-market impact on the credit derivatives and fixed income investment portfolios of the bank and its overseas banking subsidiaries, while there has been no significant deterioration in actual credit quality of the underlying investments. ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of US$2.2 billion in credit derivatives, the release noted. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$155 million of which US$88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007. In addition, ICICI Bank and its overseas banking subsidiaries have fixed income investment portfolios, which have a mark-to- market negative due to widening of credit spreads. As of January 31, 2008, this negative was about US$108 million of which US$101 million had been accounted for in the financial statements as of December 31, 2007. This includes mark-to- market on the available for sale portfolio, which has been accounted for in the shareholders' equity. The release added that unrealized gains on ICICI Bank's other investment portfolio has not been considered in above. Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/ -- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. |
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