Equity Alert: ICICI Bank down 7% on UK arm's $80 mln Lehman debt
exposure
MUMBAI--12:35PM--Shares of ICICI Bank were down 7% at 585 rupees
on
concern the company's UK-based arm has exposure of about $80 mln (3.7
bln
rupees) to
Lehman Brothers in the form of senior debt, dealers said.
However, dealers do not see more decline in the stock on account
of the news
as senior debt takes priority over other debt securities sold by the
issuer, and
the lender is likely to recover at least half of the amount.
ICICI Bank is likely to recover 50% of the $80 mln Lehman
exposure, Kotak
said in note to clients.
ABN Amro also sees ICICI Bank marking down 50-60% of Lehman
exposure, but
said except ICICI Bank no Indian bank has significant Lehman
counterpart risk.
However, analysts believe that the impact of the news is having
more of a
sentimental impact, as ICICI Bank will be able to take the hit.
Technical analysts see intraday support for the stock around
570-572 rupees.
So far today, 7.1 mln ICICI Bank shares have been traded on NSE.
September futures of the stock were at a 2-rupee premium to the spot
with
nearly 4% rise in open interest.
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