SBI has joined the growing ranks of banks reporting derivative losses. However, the extent of the losses, considering the bank?s size, isn?t much. A bank spokesperson has said there were no derivative losses in India, and that the bank had a $20-million exposure to subprime instruments and has provided for around $10 million for notional mark-to-market (MTM) losses. It has an exposure of around $800 million for its Indian clients through swaps and notes, he added.
Earlier, ICICI Bank had made MTM provisioning of $100 million for its exposure to derivative products in the international market. With this, the MTM provisioning of the bank for its exposure to international derivative markets for 2007-08 stood at $170 million.
Axis Bank reported that its exposure to derivative contracts had caused notional losses of Rs 674 crore to clients. The private sector bank said it had provided for MTM losses of Rs 72 crore for two clients who had challenged the deals in court.
While it did not name the clients, the bank said they related to six out of 188 derivative transactions it had helped structure by end-March. Nearly 113 of Axis Bank?s transactions were forex derivative deals and had notional losses of Rs 548 crore.
At the same time, however, HDFC reported an MTM gain of Rs 293.59 crore on its portfolio. HDFC has an exposure of around Rs 2,600 crore to cross-currency swaps and another Rs 13,000 crore to interest rate swaps.