ICICI Bank stock gains 6.9%; stress recognition almost over, say analysts

A day after its March quarter results, the ICICI Bank stock gained 6.9 per cent, despite the net profit plunging 50 per cent year-on-year and gross non-performing assets (NPAs) increasing sharply due to higher slippage.

The market gave a thumbs-up as it expects an improvement in the bank’s balance sheet, owing to higher NPA recognition from the stressed assets pool and better operating performance.

“The rally in the stock was triggered mainly as the bank met the Street’s expectations in terms of slippages, which came largely from the new NPA rules and were primarily from the known stressed pool,” said Lalitabh Shrivastawa,