Indian banks lent Rs 6,500cr

Amid the debt repayment crisis in Dubai, Indian banks on Friday said that they have an exposure of Rs 5,000-6,500 crore in the middle east city, but the bankers are not worried and said the development may not have major impact on their balance sheets.

Even as the RBI governor, Mr D. Subbarao, asked officials to make an assessment of fallout of the crisis triggered by $59 billion dollar on the middle east’s largest realty firm Dubai World for making necessary recommendations, banks including SBI and Bank of baroda said their accounts in the region are well maintained.

Bank of Baroda, the largest Indian lender in the United Arab Emirates, said it has an exposure of Rs 5,000 crore in Dubai.

The country’s largest lender State Bank of India has an exposure of around Rs 1,500 crore in United Arab Emirates, including Dubai.

“We have only a seven to eight per cent of our total loan-book in the entire Gulf region, which amounts to Rs 10,000-crore. These accounts are well maintained and is unlikely to cause any kind of impact on the balance-sheet,” the Bank of Baroda CMD, Mr M.D. Mallya, said.

Out of the total Gulf loan exposure, Dubai constitutes nearly half to the loan book which comes to less than Rs 5,000-crore, Mr Mallya said. An SBI official also said the bank’s loans to Dubai-based clients are on short-term basis and would be paid in three-six months time.

ICICI Bank also said it does not have any significant exposure to Dubai corporates. “ICICI Bank has no material, non-India linked exposure to Dubai corporates,” a spokesperson said.

No related posts.