Regaining the mojo: Here's what is driving ICICI Bank's return to normalcy

Street's confidence in the stock is at an all-time high, and so are the valuations

After its September-quarter (Q2) results, ICICI Bank had indicated that normalcy was certainly on course for its stock after four painstaking years. The Street may have picked that earlier, if the stock’s sharp outperformance in the past three months is anything to go by.

Among the key takeaway was the bank’s net non-performing asset (NPA) ratio. At 1.7 per cent in Q2, it was close to the level seen in its pre-asset quality review (AQR) days. Also, its annualised credit cost or losses because of credit risk fell to 170 basis points (bps) from 300 bps last year. At the