Indian banks have $1 bn exposure to five troubled institutions

Indian banks through their overseas branches and subsidiaries have a combined exposure of around $1 billion to five troubled institutions –Wachovia, Washington Mutual, AIG, Fortis and Lehman Brothers, according to media reports. This is one of the big concerns for the nation. The global crisis is the key factor for the markets crash and the affected the banking system, in order to check the crisis, the RBI has cut the CRR to 7.5 per cent to infuse 60,000 crore rupees into the system.

On the Monday, the stock trading was up, it was a bit of relaxation for the investors those have witnessed the consecutive crashes for few days. Today the Sensex closed at 11332.23 with around 804 point up and Nifty was also closed at around 210 points up. Almost stock markets of the world today had good time on Monday, as the trading was ended in good note except few markets. However, the market is uncertain and no speculation would work out for teh investors in days to come. The reports of the exposure to five troubled institution is a concern in India but today’s trading reflected of having little impact of global crisis on Indian banks. Meanwhile, Reserve Bank of India has said its inspection of ICICI Bank and UK subsidiary has not revealed anything to cause alarm, media reports read.