Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
General

The First Real Subprime Loss: ICICI Bank Gets Hit

So it seems ICICI Bank has around 1000 cr. ($260 million) of losses due to US subprime.

ICICI Bank Ltd., India’s second- largest bank, had a marked-to-market loss of $264 million as of Jan. 31 on account of exposure to credit derivatives and investments, a minister said.

Following the subprime crisis overseas, ICICI Bank’s overseas operations had reported” the marked-to-market loss, Junior Finance Minister Pawan Kumar Bansal said in a written reply to a question in parliament.

I’d written about this in January, but was surprised to see no news coming in since then. Next in line is SBI, I wonder what the hit there is.

  • Anonymous says:

    >I think this matter will get politicised and call for Enquiry/CBI will be raised. Singapore Govt., the main owner of ICICI bank may say finally “enough with India”. (sic)

  • manish says:

    >I love how the loss is quoted in USD so when compared to other banks it doesn’t seem so bad. Make no mistake Rs 1000 CR is a large sum.

  • Anonymous says:

    >The picture is not clear;
    1. Minister Bansal says 250 M $
    2. ICICI VP says 70
    3. What kind of securities? Was it sold by ICICI to their clients for which they were counterparties? or was it securities stuck with ICICI unable to sell in the International markets?

  • Hans says:

    >anyone know the full amount of exposure ICICI has to the CDO’s and SIV vehicles??

    I read somewhere that it is close to $1.5 Billion…reading through the conference call transcript I didnt even hear anyone mention the subprime stuff. Are the analyst turning deaf ears to this??

    OR do you think this is already factored into the stock? Just wanted to know what you guys think….