ICICI shares dip on Russian exposure worry

MUMBAI Wed Mar 4, 2009 2:42pm IST

A customer uses his card to withdraw money from an ATM in Jammu in this October 14, 2008 file photo. REUTERS/Amit Gupta

A customer uses his card to withdraw money from an ATM in Jammu in this October 14, 2008 file photo.

Credit: Reuters/Amit Gupta

Related Topics

MUMBAI (Reuters) - Shares in ICICI Bank fell 4 percent on Wednesday on concerns the bank's Russian assets may be vulnerable as firms there struggle to stay afloat.

ICICI shares were down 12.1 rupees at 284.30 rupees in a Mumbai market that was off 0.1 percent in the afternoon. The stock dropped to just above last October's low of 282.15 rupees, a break of which would take it to its lowest in nearly 4-½ years.

"The market is very concerned over the Russian exposure. Investors are expecting sharp write-downs as firms there are failing," said Amitabh Chakraborty, president for equities at Religare Securities.

The stock is down more than a third this year. It tumbled 21.2 percent in February and has seen more losses in March. Its market capitalisation has fallen to below that of smaller private-sector rival HDFC Bank.

"There are no losses in Russia," an ICICI spokesman said, but declined to put a value to the Russian assets.

Brokerage CLSA said in a recent note the Russian exposure under ICICI Bank Eurasia was $584 million, consisting largely of loans to customers and placements with banks.

The subsidiary was formed in 2005 after the Indian bank bought Russia's Investitsionno-Kreditny Bank.

The Russian operations do not have a meaningful deposit franchise and group companies fund 84 percent of the liabilities, CLSA said.

Last year, the management of NYSE-listed ICICI had to repeatedly assure investors and depositors after its exposure to collapsed Lehman Brothers triggered a slump in its share price.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage