Bank of America-Merrill Lynch reiterates its "buy" rating on ICICI Bank
BoA-ML says met with Chanda Kochhar, CEO of the India's biggest private lender, and said asset quality may be "much better than expected" and could lead to a "re-rating of the stock."
"High" tier I capital also positions ICICI Bank well for potential regulatory changes, and adds lender may not see a "marked rise" in restructured loans.
BoA-ML says expects 15 percent rise in gross non-performing loans vs earlier forecast of 25 percent increase, and says ICICI much better positioned" to manage credit cycle due to its high share of retail loans and low percentage of SME loans.
