ICICI Banks UK subsidiary has 18% exposure to US market

Written by Banking Bureau | Mumbai, Sep 29 | Updated: Sep 30 2008, 07:29am hrs
ICICI Bank, the country's second largest commercial bank whose stock has seen severe hammering in recent times on various speculations, clarified that 18% of its UK subsidiary's non-India investment book has got an exposure to the United States currently.

The clarification also states that 98% of ICICI Bank UK PLC's non-India investment book is rated investment grade and above by agencies like S&P, Moody's, Fitch etc and has got zero exposure to US sub-prime credit, whether directly or indirectly or through credit derivatives such as CDO/CLN/CDS. In addition, ICICI Bank UK PLC holds cash equivalent instruments (inter-bank placements and certificates of deposits) worth $ 1.1 billion. There is no exposure to US banks in this category.

However, ICICI Bank scrip has depreciated by around 12% on the BSE during the last two trading sessions, where Sensex and Bankex have gone down by 4% and 6% respectively. The ICICI Bank share price has witnessed a lot of volatility on Indian bourses in the recent past. In the last four weeks, Sensex and Bankex have depreciated by 13% and 12% respectively. Whereas ICICI Bank share price on the BSE has gone down by around 26%. Just before ten days, K V Kamath, managing director & CEO, ICICI Bank, had commented that vested interests were behind the concerted move to short-sell the bank's shares on Indian bourses. The bank's share price also witnessed a severe volatility.

then due to insider trading rumours on BSE.