Bank of Baroda says UAE loan book exposure 7-8%

Bank of Baroda says UAE loan book exposure 7-8%

Mumbai: State-run Bank of Baroda has exposure of 7-8% of its loan book in the United Arab Emirates, a top official told Reuters on Friday.

The lender’s total UAE exposure stands at around Rs10,000 croreout of a total loan book size of Rs1.5 trillion, chairman MD Mallya said over the telephone.

At 12.02pm, shares in the bank was down 5.44% at Rs517, the bank index down 3.97%, and the broader Mumbai market lost 3.09%.

Dubai’s debt problems revived concerns about the health of the global financial system and exposure of Indian lenders to the Middle East.

“Our exposure includes both corporate and retail accounts and not only the real estate portfolio," Mallya said.

The funds had been disbursed in all the Emirate constituents like Abu Dhabi, Bahrain, Oman and not only in Dubai, Mallya said.

“We see no slippages in the accounts so far. These are good performing assets," he said, adding he is not contemplating any action on its exposure in the Middle East.

Dubai’s debt problems come at a time when Indian bank loan growth was crimped to 9.8%, from average 30%, growth levels a year ago following global economic downturn.