ICICI Bank's large net worth to protect debt holders: ICRA

According to credit rating agency, ICRA, ICICI Bank needs to maintain its capital levels and non performing assets or NPAs at acceptable levels, and also improve its liquidity profile. However, the company has taken steps to improve its asset quality over long term, ICRA added.

The ratings agency said, ICICI Bank's large net worth will give protection to debt holders, but there is a pressure on the company due to deterioration in retail asset quality and rise in cost of funds.

ICRA has reaffirmed its ‘MAAA’ rating, indicating highest quality for ICICI Bank's Term Deposits and reflecting the high rating supported by its 11.03% capitalization level status as second largest bank.

However, ICRA said it will continue to monitor if ICICI Bank is reducing dependence on bulk deposits.