Stock Fundamentals

ICICI Bank - Asset quality issues persist

Radhika Merwin | Updated on January 11, 2018 Published on May 07, 2017


The stock of ICICI Bank rose 9 per cent, post its March quarter results, partly due to lower slippages and partly due to fast-track resolution expected under the NPA ordinance. But fundamentally, not much has changed for the bank on the asset quality front. True, slippages (excluding the cement account of ₹5,300 crore) moderated to ₹5,911 crore in the March quarter from the peak of around ₹8,200 crore in the June 2016 quarter. But the additions to bad loans still remain sizeable. Until the December 2015 quarter, ICICI Bank’s quarterly additions to bad loans were in the ₹1,600-2,200 crore range. At nearly ₹6,000 crore, slippages remain elevated. Also, further slippages from the watchlist are of concern. Overall loan growth was a muted 6.7 per cent. However, on the domestic front, loans grew 14 per cent year-on-year, driven by the retail segment. The stock can come under pressure if slippages mount in the coming quarters.

Published on May 07, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.