Bankruptcy of Lehman Brother will cost Rs 375 cr for ICICI as its UK subsidiary has invested 57 m euro in the bonds of Lehman Brothers. However, according to JMD of the ICICI Bank Chanda Kochhar, Lehman Brothers has already provided $12 million against the investment in these bonds. The bank had transacted with Lehman Brothers as part of treasury operation.

 

Kochhar said that considering 50% recovery estimate, the bank will provide for additional $ 28 million against the expected losses. She analyzed that the total exposure of the ICICI Bank is less than 1% of its total assets which is over Rs 4.8 lakh crore. The credit fiasco has been such that, now, Indian players will avoid dealing with American banks.