NEW DELHI: ICICI Bank could see a rise in its nonperforming assets with Singapore-based oil trading major Hin Leong Trading filing for bankruptcy. According to the oil trading company's filing, ICICI Bank has an exposure of $100 million, out of its total dues of $3.64 billion, to the secured lenders.
Out of its total exposure to Hin Leong Trading, $75 million is secured over inventory, as per the inventory.
The top lenders to the company include HSBC, ABN AMRO Bank N.V. and DBS Bank, with exposure of $598 million, $299 million and $288 million respectively. As of the quarter ended December 2019, ICICI Bank's net non-performing assets (NPA) stood at Rs 10,388.50 crore and the gross NPA was Rs 43,453.86 crore.
The bank did not reply to a detailed questionnaire mailed to it. The fall of the oil trading major comes at a time when oil prices are at multi-year low due to the fall in demand and high supplies amid the coronavirus crisis. This poses a challenge to the bank even if it decides to recover 75% of its dues through oil inventory.