The second largest bank of India, ICICI would suffer most from the bankruptcy of investment bank Lehman Brothers. The bank has reserved additional $28 mn to cover losses.

The UK subsidiary of ICICI has a good exposure in US market. It has about $80 million in Lehman’s senior bonds. ICICI Bank Joint Managing Director & CFO, Chanda Kochhar added that the bankruptcy of Lehman Brothers would cast far reaching effect on the global economy. The balance sheet for the current quarter would determine the actual loses. The brokerage firm Edelweiss, forecasted a loss of around $200 million to the bank for its exposure in the US market.

Other Indian banks such as State Bank of India, Punjab National Bank and Bank of Broda, have also some exposure in the US market. These banks have make provisions to tackle losses. The SBI  has reserved $5 million to deal with any eventuality. Axis bank is also preparing to deal with the situation. The bank has an inter-bank transaction of $1.5 million with Lehman Brothers in Singapore.