Bank of Baroda denied any exposures to investments linked to the US subprime market, reports Financial Express.
The bank does not have any exposures to collateralised debt obligations or credit default swaps. The bank, however, said it was having an exposure to credit-linked notes (CLNs) with reference entities as single Indian corporates or banks.
BoB`s total exposure in CLNs was Rs 12.96 billion as on Dec. 31, 2007, and full provisioning was made as per the mark-to-market norms. The outstanding provisioning as on Dec. 31, 2007, was Rs 110.6 million and if these investments are marked to market as of Feb. 29, 2008, there would be additional provisions of USD 2.5 million or Rs 100 million approximately, as credit spreads have widened.
Shares of the Bank closed down Rs 21.65, or 6.5%, at Rs 311.55. The total volume of shares traded at the BSE was 606,202. (Wednesday)
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