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

MUMBAI (Reuters) - State-run Bank of Baroda has exposure of 7-8 percent 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 100 billion rupees out of a total loan book size of 1.5 trillion rupees, Chairman M.D. Mallya said over the telephone.

At 12.02 p.m. shares in the bank was down 5.44 percent at 517 rupees, the bank index down 3.97 percent, and the broader Mumbai market lost 3.09 percent.

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 percent, from average 30 percent growth levels a year ago following global economic downturn.

(Reporting by Tamajit Pain; Editing by Harish Nambiar)

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