ICICI Bank falls over 5% after lender removed from Chris Wood India portfolio

"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 Bank said in a regulatory filing.

According to market sources, ICICI Bank has an exposure of $100 million to the oil trader. Bank sources told Reuters that the exposure was by way of cargo financing.

The founder and director of top Singapore oil-trading company Hin Leong Trading Pte Ltd (HLT) directed the firm not to disclose hundreds of millions of dollars in losses over several years, he said in a court filing reviewed by Reuters.

The company has been weighed down by hefty debts of around $3 billion and is facing a major crisis as oil prices have been ravaged by the COVID-19 outbreak and a price war among oil majors.A drop of two-thirds in the oil price in the first three months of this year, a tightening of bank credit lines and margin calls at HLT caused a "severe depletion" of the company's cash reserves, the filing said.