ICICI Bank on Tuesday confirmed it has an exposure to troubled Singapore oil firm Hin Leong Trading (HLT). The lender’s outstanding loans to the company stand at $100 million, of which $75 million has been secured over inventory, according to a report by S&P Global Platts.

“We confirm the bank, in the normal course of its business, has exposure to the borrower group in question, is taking due steps to protect its interests, and will appropriately reflect the same in its financial statements, as it would do in respect of all its exposures,” ICICI Bank told the exchanges.

The S&P report, quoting corporate filings, said ICICI Bank has already issued writs against the vessels Wu Yi San and Chang Bai San with a cargo owner’s claim, and the banks, Societe General and ABN AMRO, issued a charge on Hin Leong’s assets and book debts as far back as March. HLT owes 23 secured creditors a total $3.64 billion.

ICICI Bank’s stock took a beating on Monday and Tuesday after news of its exposure to HLT became public, ending 8.28% lower than their previous close.

Experts said whether ICICI Bank would be able to enforce any unilateral action for recovery will depend upon the nature of security supporting its loans as also on the laws governing financial insolvency in Singapore. “ICICI can always work together with the other lenders and the regulations associated with the recovery of proceeds in that jurisdiction. Within the framework of that law, they will have to try and recover as much as possible,” an expert said. If the bank has a pari-passu charge on assets, it is more sensible to work with the other lenders, he added.

The regulatory norms with respect to provisioning and asset recognition are uniform for Indian banks’ domestic and foreign exposures. It is not possible to determine the amount of provisions ICICI Bank will have to hold against its HLT exposure as it is unclear if and when the latter has defaulted on its dues to the bank.

HLT had not reported its dire financial situation till April 17, when one of its directors Lim Chee Meng, also known as Evan Lim, filed for a six-month debt moratorium for another family company, Ocean Tankers. In the application, Lim clarified that HLT’s financial position was not what it had been made out to be.