ICICI Bank remains cautious on overseas loan book amid global uncertainties

ICICI Bank

ICICI Bank will remain cautious on the overseas loan book due to uncertainties in the global market after the US President Donald Trump announced the imposition of the tariffs on the major countries, said Sandeep Batra, executive director of the bank during the post earning conference call.

He made these remarks even after Donald Trump has paused the tariffs for 90 days, bringing relief to the global and domestic stock markets.

According to the investors presentation, overseas book of the bank stood at Rs 30,785 crore in the January-March quarter, which was nearly 8 percent down on a yearly basis. In a year ago period, overseas book of the bank stood at Rs 33,451 crore.

The share of the overseas book of the bank, of the total advances stood at 2.3 percent, which was 2.40 percent in a quarter ago period, and 2.82 percent in a year ago period.

Bank have said that the overseas book of the bank includes the impact of exchange rate movement. Indian currency remained volatile in the last few months.

Earlier this month, Trump announced global reciprocal tariffs under which the US would charge a 34 percent tax on imports from China, a 20 percent tax on imports from the European Union, 25 percent on South Korea, 26 percent on India, 24 percent on Japan and 32 percent on Taiwan.

The imposition of the tariffs by US President Donald Trump earlier this month jolted the global markets, including India, triggering concerns of potential slowdown in the global growth leading to recession in major economies.

Meanwhile, earlier this week, Finance Minister Nirmala Sitharaman also pointed out that the intensification of the tariff wars and the rise of protectionist policies have the potential to disrupt global supply chain.