SBI holds US$5mn in Lehman Bros securities

SBI holds US$5mn in Lehman Bros securities State Bank of India (SBI) has an exposure of US$5mn to Lehman Brothers, the failed US investment bank that filed for bankruptcy protection on Sept. 15, chairman O.P. Bhatt said on Friday. SBI expects to recover 60% to 70% of the investment in securities linked to Lehman Brothers, he told reporters in Bhavnagar, Gujarat. SBI has set aside enough money to cover losses on the entire investment, Bhatt said. The financial crisis that has rocked the US and Europe will have a minimal impact on the Indian banking system, Bhatt said, adding that Indian banks must be watchful of bad debts. The SBI chief said that he doesn't expect the bad debts at the country's biggest bank to rise. He added that SBI's current bad debts are lower than what they were at the end of March. Interest rates in India may not fall in the immediate future, Bhatt said, adding that SBI is comfortable with a loan growth of 24-25%. He said that high interest rates will hit Indian companies. Bhatt said that SBI plans to open 2,000 new branches in the current fiscal year. The SBI Chairman said India's economy will grow by 7.5-8% in the current fiscal year