S&P affirms ‘BBB-‘ rating on ICICI Bank

Global rating agency S&P on Monday affirmed ‘BBB-‘ on ICICI Bank with stable outlook on improved asset quality.

This is despite an uneven economic recovery in India and macroeconomic challenges.

”In our base case, the bank’s weak loans, defined as nonperforming loans (NPLs) and restructured loans, will decline to 3-3.5 per cent of total loans over the next 12 months, from about 4.6 per cent as of March 31, 2022,” S&P Global Ratings said in a statement.

Broadly stable credit conditions will support this and credit costs should remain at about 1 per cent over the next 12-18 months, it said, adding the bank’s asset quality should remain better than the Indian sector average and in line with international peers over the next two years.

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