ICICI Bank to concentrate on forex credit derivatives
Mumbai: ICICI Bank has decided to make an additional provisioning of $70 million in the current quarter for mark-to-market (MTM) losses on exposure to credit derivatives of its overseas branches and subsidiaries, with spreads widening further on continuing impact of the sub-prime crisis. The total depreciation losses as on January 31, 2008, on collateralised debt obligations (CDOs) and credit-linked notes (CLNs) held in its overseas operations amount to $264 million. CDOs are securities backed by pools of other securities and bought by investors wanting exposure to the income from a set of loans or bonds, but not direct exposure to them. ICICI Bank has an aggregate exposure of $2.2 billion to credit derivatives overseas. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about $155 million, of which $88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007. In addition, ICICI Bank has fixed income investment portfolios, which have a mark-to-market negative due to widening of credit spreads. As of January 31, 2008, this negative was about $108 million, of which $101 million had been accounted for in the financial statements as of December 31, 2007. The price of ICICI Bank shares fell sharply after the Parliament was informed of the provision that the bank would have to make because of depreciation in investment portfolio due to the sub-prime crisis.
ICICI Bank clarifies on news item
With reference to the news item appearing in a leading web portal titled, "ICICI Bank has lost $ 264 Mn till Jan 31 on subprime crisis", ICICI Bank Ltd has clarified as under:
"ICICI Bank Ltd has no material direct or indirect exposure to US sub-prime credit. The widening of credit spreads in the international markets have resulted in a negative mark-to-market impact on the credit derivatives and fixed income investment portfolios of the Bank and its overseas banking subsidiaries, while there has been no significant deterioration in actual credit quality of the underlying investments.
ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of USD 2.2 billion in credit derivatives. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$ 155 million of which USD 88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007.
In addition, ICICI Bank and its overseas banking subsidiaries have fixed income investment portfolios which have a mark-to-market negative due to widening of credit spreads. As of January 31, 2008 this negative was about US $108 million of which US $ 101 million had been accounted for in the financial statements as of December 31, 2007. This includes mark-to-market on the available for sale portfolio which has been accounted for in the shareholders' equity.
It may be noted that unrealized gains on ICICI Bank's other investment portfolio has not been considered in above."
Aventis Pharma fixes Book Closure for final dividend & AGM
Aventis Pharma Ltd has informed that the Register of Members & Share Transfer Books of the Company will remain closed from April 05, 2008 to April 24, 2008 (both days inclusive) for the purpose of payment of final dividend & Annual General Meeting (AGM) of the Company to be held on April 24, 2008.
Indiabulls Real Estate - Updates
With reference to the earlier announcement dated February 28, 2008, regarding the Board of Directors of Indiabulls Real Estate Ltd had approved the proposed investment and/or purchase of up to 100% of the ordinary shares in Dev Property Development Plc., an Isle of Man registered Company listed on the London Stock Exchange's AIM, and that simultaneous to the said announcement, the Company making a Rule 2.5 announcement in United Kingdom under the provisions of City Code.
In accordance with Rule 2.10 of the City Code, Indiabulls Real Estate Ltd has made the following announcement:
- Rule 2.10 Disclosure
"In accordance with Rule 2.10 of the City Code on Takeovers and Mergers (the "City Code"), Indiabulls Real Estate Ltd ("IBREL") confirms that as at the close of business on February 29, 2008 it had 240,835,066 ordinary shares of 2Rs each in issue. The International Securities Identification Number (ISIN) for IBREL's ordinary shares is INE069101010.
Blue Star's equity shareholders approves scheme of amalgamation
The equity shareholders of Blue Star have unanimously approved the scheme of amalgamation of Admo Holdings, Sunag Investments, Sunashad Investments and Mohan T Advani Finance with Blue Star.
This was approved at the shareholders meeting held on 04 March 2008.
Cinemax India to hold board meeting
A meeting of the board of Cinemax India will be held on 11 March 2008, to discuss business expansion plan of the company.
T People India's equity shareholders to meet on 08 April 2008
A meeting of the equity shareholders of IT People India will be held on 08 April 2008 for the purpose of considering and, if though fit, approving, with or without modification(s), the scheme of arrangement between Marketplace Technologies and Orient Information Technology and the company and their respective shareholders.
Tata Communications & BitGravity announces global strategic partnership
Tata Communications and BitGravity, Inc, the pioneer in content delivery networks (CDNs) for interactive broadcasting, announced on 05 March 2008 a strategic partnership. Tata Communications will co-brand, resell and jointly market BitGravitys technology platform worldwide as part of a value-added services offering on top of Tata Global Network.
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