ICICI Bank has investment of 57 mn euro in Lehman

September 16th, 2008 - 11:05 pm ICT by IANS  

Lehman BrothersMumbai, Sep 16 (IANS) India’s largest private lender ICICI Bank Tuesday said its London subsidiary has an investment of 57 million euros ($80.7 million) in senior bonds of Lehman Brothers Inc, which filed for bankruptcy protection Monday.”The exposure constituted less than one percent of ICICI Bank UK Plc’s total assets and less than 0.1 percent of the consolidated total assets of the ICICI group,” bank’s joint managing director and chief financial officer Chanda Kochhar said.

However, the bank holds provision of about $12 million against investments in these bonds, she added.

“Considering a 50 percent recovery estimate, the additional provision required would be about $28 million. So there was no material impact felt on our entities on account of exposure to Lehman Brothers,” Kochhar said.

Meanwhile, the 158-year-old financial institution Lehman has suspended operations with immediate effect in its three Asian arms - Lehman Brothers Asia, Lehman Brothers Securities Asia and Lehman Brothers Futures Asia Ltd.

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