Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Subprime Hits India | CapitalMind

Subprime Hits India

7 Jan 2008Deepak Shenoy1 min read

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What is "Subprime Hits India" about?
What category is this article in?: General
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 7 January 2008.
How long does this article take to read?: 1 min read
What topics does this article cover?: Crisis 2008

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.