Credit fundamentals of ICICI Bank continue to be sound, backed by strong market position in the domestic banking industry and adequate financial profile, global credit rating agency Standard & Poor's (S&P) said today in a release.
This is supported by its healthy capitalisation, satisfactory loan quality and diversification, the release added. "The overseas loan and credit derivative portfolio of the bank, including its overseas subsidiaries, is predominantly to Indian companies for their Indian and overseas operations and hence its quality is largely dependent on corporate credit quality and economic conditions in India," the release said.
The credit rating agency believes that the Indian banking industry's regulatory environment and institutional framework is supportive. "We also consider ICICI Bank to be systemically important and hence, it is expected to receive extraordinary systemic support in the event of any financial distress. However, the existing credit rating does not incorporate this support and is entirely based on its stand-alone credit profile," the release said.