In a bid to limit exposure to volatile Credit Derivatives (CD), India's second largest lender, ICICI Bank has sold $275 million (around Rs 1,100 crore) worth of such portfolios overseas.
Confirming the development, an ICICI spokesperson told PTI that the bank was reducing its exposure to the highly volatile CD portfolios in its foreign offices and thus to reduce its Mark-to-Market (MTM) losses.
"We have sold a portion of our CD portfolio about three weeks back. We have accounted for that already," the spokesperson said today.
The bank had made a total MTM provisioning of Rs 594 crore for April-June owing to a depreciation in its bond and equity portfolios.
The lender posted a nearly six per cent fall in its net profits during the quarter at Rs 728 crore as compared to Rs 775 crore in the year-ago period.
As on March 31, 2008, ICICI Bank had a total CD exposure of $1.6 Billion.
