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India’s ICICI Bank confirms exposure to troubled oil trader Hin Leong

NEW DELHI (Reuters) – India’s second largest private lender ICICI Bank <ICBK.NS> on Tuesday confirmed its exposure to the Singapore-based troubled oil trader Hin Leong Trading Pte Ltd (HLT) and said it is taking steps to protect its interest.

“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,” ICICI said in a stock exchange filing.

The Bank did not elaborate the extent of its exposure and the steps it is taking to protect its interest. Reuters on Monday reported the ICICI Bank has $100 million exposure to the trader.

ICICI Bank is asking for authorities to impound two vessels operated by Ocean Tankers (Pte) Ltd, a unit HLT, an ICICI source said on Monday.

According to a court filing reviewed by Reuters, HLT’s founder and director had directed his firm not to disclose hundreds of millions of dollars in losses over several years.

Shares of ICICI Bank fell about 9% on Tuesday.

(This story corrects day in lede graf to Tuesday.)

(Reporting by Nidhi Verma; Editing by Simon Cameron-Moore)