ICICI Bank 2Q18: Rising Risk of NPL Divergence with RBI

Senior investment analyst

Pallavi Deshpande

Equity Bottom-Up

<p>We believe <a href="https://www.smartkarma.com/entities/547" target="_blank" data-smartkarma-citation="entities:547:1">ICICI Bank Ltd (ICICIBC IN)</a> stock performance will be determined by investors perception on where it stands in this cycle of NPL cleanup. Management guided for a significant decline in slippages in FY18 during the FY17 analyst call and with most of it expected to come from the watchlist (WL). However, 1Q18 results saw slippages outside the WL outpace WL slippages and management guides for slippages outside the WL to increase in FY18. We believe management is now focussing on a cleanup…</p>

We believe ICICI Bank Ltd (ICICIBC IN) stock performance will be determined by investors perception on where it stands in this cycle of NPL cleanup. Management guided for a significant decline in slippages in FY18 during the FY17 analyst call and with most of it expected to come from the watchlist (WL). However, 1Q18 results saw slippages outside the WL outpace WL slippages and management guides for slippages outside the WL to increase in FY18. We believe management is now focussing on a cleanup…

ICICI Bank: NPL Cleanup to Spillover into FY19