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ICICI Bank confirms exposure to Singapore-based Oil trader

ICICI Bank on Tuesday confirmed that it has exposure to Ocean Tankers, a unit of Singapore-based troubled oil trading company Hin Leong Trading (HLT), which has filed for bankruptcy. 

In a regulatory filing, the private lender said, “We confirm 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.” 

The Singapore firm is in the dock for its alleged failure to disclose hundreds of millions of dollars in losses over several years. ICICI Bank had lent $100 million to the company, out of which $75 million was secured through inventories, a report by S&P Global Platts agency said.

S&P Global Platts’ report blamed Hin Leong Trading Pte. Ltd’s founder Lim Oon Kuin for financial mismanagement and reselling of inventory that was used as banking collateral, causing losses running into billions of dollars, in a court filing by his son Lim Chee Meng.

The total exposure of unsecured creditors in Hin Leong Trading stood at $3.6 billion. ICICI Bank, HSBC, DBS Bank, Bank of China, ABN Amro Bank NV (Singapore branch) are the other lenders who have exposure in the company. 

Following the reports, shares of the private lender went down by 9% to close at 329.80 a piece in NSE

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