ICICI Bank saw a sharp increase in its loan defaulters in the past quarter. Net non-performing assets [NPA] as a percentage of net customer assets increased from 0.98% at the end of March to 1.3% at the end of June. An increase of 0.32% in just 3 months is a cause of concern for many Banking analysts.
The stock price of ICICI Bank is on the rise mainly because of its subsidiaries – ICICI Insurance.
We personally don’t recommend ICICI Bank to our investors however, HDFC Bank in the Private Sector and Bank of Baroda under the public sector are our favorite picks. But certainly not at this level, BUY only when the market corrects.