ICICI Bank: Asset quality worry remains

Continued traction in retail a positive but margins could come under pressure

Even as ICICI Bank's slippages came in line with expectations in the December 2016 quarter (third one or Q3 of FY17), there seems no respite on this.

The management expects incremental bad loans to remain elevated. Its gross non-performing assets ratio increased to 7.2 per cent in Q3 versus 6.12 per cent in the September quarter. About a fourth of incremental slippage from the corporate and small & medium enterprises (SME) segments were outside of the bank's watch-list, indicating high stress in its overall book.

While the bank continues to reduce its exposure to the troubled sectors of power, iron and steel,