Comments
Given that the RBI’s report on the Annual Risk Based Supervision for FY-17 was keenly awaited by the market, ICICI Bank reporting lower slippages in the latest December quarter eases some of the concerns of investors.
But it is still early days to indicate bottoming of the NPA cycle. Still elevated slippages, sizeable watchlist accounts and notable portion of loans restructured under 5:25 scheme and SDR (strategic debt restructuring) require monitoring in the coming quarters. The pick up in credit growth (domestic) from 12.8 per cent in the September quarter to 15.6 per cent YoY in the December quarter is, however, a positive trend.
The fact that the growth in SME segment has been driven by working capital financing and lending to higher-rated corporates lends comfort.
In the coming quarters, sustainability of asset quality performance will be key to draw investor interest.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.