ICICI Bank tumbles on buzz of $100 mn exposure to cash-strapped Hin Leong Trading

ICICI Bank tumbled 8.17% to Rs 331.95 after the media reported that the bank has an exposure of $100 million to Ocean Tankers, a unit of Singapore oil-trading firm Hin Leong Trading (HLT), that has filed for bankruptcy in Singapore.

The media reported that HLT and its sister company Ocean Tankers both filed for bankrutpcy on Friday (17 April) which will give 30 days to restructure debt. HLT, one of Singapore's largest independent oil traders, has total debt of close to $4 billion.

According to media reports, ICICI Bank has lent $100 million to Ocean Tankers, out of which $75 million is secured through inventory. ICICI Bank has reportedly issued notices to impound two vessels operated by Ocean Tankers.

Ocean Tankers (Pte.) Ltd. specializes in the transportation of petroleum and related products, providing worldwide coverage from the Far East and Pacific Rim to the Persian Gulf and beyond. It manages and operates a fleet of more than 130 vessels ranging from 180 dwt coastal barges to 318,000 VLCCs.

Meanwhile, ICICI Bank clarified to the bourses on Tuesday, 21 April 2020, that the bank, in the normal course of its business, has exposure to the borrower group in question, is taking due steps to protect its interests, and will appropriately reflect the same in its financial statements, as it would do in respect of all its banking exposures.

ICICI Bank's standalone net profit jumped 158.36% to Rs 4,146.46 crore on a 17.23% surge in total income to Rs 23,638.26 crore in Q3 December 2019 over Q3 December 2018.

ICICI Bank is engaged in providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services.

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