- Wealth PMS (50L+)
State Bank of India, ICICI Bank , Bank of Baroda and Bank of India are set to book mark-to-market losses on the exposures of their foreign offices to credit derivatives, with the spreads on these widening since international lenders turned risk-averse following the crisis in the US subprime (or high-risk home loan) market.
Exposures of ICICI bank are about $1.5 billion, of which the article says mark-to-market losses are about 5-10%, meaning between 300 and 600 crore. That’s about 30-60% of their quarterly net profit. SBI has about $1 billion and the impact to them is about 10-25% of their quarterly net profit (1600 cr) .
Disclosure: Short ICICI.