ICICI Bank has Rs 375-cr exposure in Lehman Brothers

NEW DELHI: Country's largest private sector lender, ICICI Bank today said its London subsidiary has 57 million Euro (about Rs 375 crore) exposure in the Lehman Brothers which has filed for bankruptcy protection.

"ICICI Bank UK Plc holds 57 million euro of senior bonds of Lehman Brothers Inc potential losses are not material," the bank said in a statement. The bank said it had undertaken transactions with the US-based troubled investment banker as part of treasury operations.

"The exposure to Lehman Brothers' entities on account of these transactions and potential loss thereon are not material," it said. ICICI Bank shares plunged by 5.82 per cent to Rs 591.35 on the Bombay Stock Exchange.

Lehman Brothers, which is a 158-years-old-financial institution has filed for bankruptcy protection, after losing around USD 60 billion (About Rs 2,76,000 crore) in sinking real-estate market.

Another investment bank Merrill Lynch is being bought over by Bank of America for USD 50 billion, while world's largest insurer American International Group (AIG) is also facing financial crisis. Meanwhile, Lehman has suspended operations of its three Asian arms.

Lehman Brothers Asia Ltd, Lehman Brothers Securities Asia Ltd and Lehman Brothers Futures Asia Ltd have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice.