Business

U.K. subsidiary has ‘zero’ exposure to U.S. sub-prime: ICICI Bank

MUMBAI: ICICI Bank on Monday said its U.K. subsidiary did not have any direct or indirect exposure to the U.S. sub-prime credit and had a high rating to 98 per cent of its $3.5-billion non-India investment book. The bank came with a clarification after its shares plummeted by 12.11 per cent to Rs. 493.30 on worries about the bank’s mark-to-market exposure through various credit instruments.

“ICICI Bank UK PLC has zero exposure to U.S. sub-prime credit, whether directly or through credit derivatives such as collateralised debt obligations (CDO), credit linked notes (CLNs) and credit default swaps (CDS),” an ICICI Bank statement said.

The lender’s U.K. subsidiary has only 18 per cent exposure to the U.S. in its non-India investment book. Also, about 89 per cent of its investments are rated ‘A’ and above by global rating agencies, the bank said.

Further, ICICI Bank UK holds cash equivalent instruments, inter-bank placements and certificates of deposit of $1.1 billion, where it has no exposure to U.S. banks, it said.

ICICI Bank UK has a capital adequacy ratio of 17.4 per cent as on June 30, and a total balance-sheet size of $8.5 billion, it said.

ICICI Bank has consolidated assets of about $113 billion as on June 30, 2008. — PTI

© Copyright 2000 - 2009 The Hindu