ICRA has assigned the rating of AAA (stable) to Rs 150 billion unsecured redeemable long term bonds of ICICI Bank (IBL, or, the bank).

ICRA also has rating outstanding of AAA (pronounced ICRA triple A) with a stable outlook on Rs 230.50 billion of Lower Tier II Bonds Programme, Rs 200 billion unsecured redeemable long term bonds programme and Rs 1.46 billion of long term bonds of IBL.

ICRA also has the rating of AAA(stable) on the debts taken over by IBL from the erstwhile ICICI and erstwhile The Bank of Rajasthan (long term bonds of Rs 13.71 billion and sub debt of Rs 2.12 billion).

Further, ICRA has rating outstanding of MAAA (pronounced M triple A) rating with stable outlook outstanding on the Term Deposit Programme and A1+ (pronounced ICRA A one plus) rating on Rs 500 billion Certificates of Deposit Programme of IBL.
 
The highest credit quality ratings are supported by IBL's strong position in the Indian financial system, strong operating  performance,  its  sound  capitalization  levels  (CRAR:  16.67%;  Tier  1  Capital:  13.26%)  as  on September 30, 2016 and its extensive corporate relationships, besides its retail franchise.

ICRA has taken note of the increase in slippages in H2FY2016 and H1FY2017. In light of the bank's exposure to stressed sectors, the pace of fresh NPA generation as well as recoveries from the existing stock of Gross NPAs and standard restructured advances would be a key monitorable. Going forward, the ratings would be sensitive to the bank's ability to improve its asset quality indicators.
 
The loan book of the bank stood at Rs 4352.64 billion as on March 31, 2016 as against Rs 3875.22 billion as on March 31, 2015, indicating a growth of ~12%. In H1FY2017, on YoY basis, the advances grew by further 10.9% to Rs 4542.56 billion. As at September 30, 2016, wholesale advances constituted 27.7% of the bank's overall advances (28.8% as at March 31, 2015 and 27.5% as at March 31, 2016), retail advances constituted 47.9% (42.5% as at March 31, 2015 and 46.6% as at March 31, 2016), overseas advances constituted 20.1% (24.3% as at March 31, 2015 and 21.6% as at March 31, 2016) and the SME advances accounted for 4.3% (4.4% as at March 31, 2015 and 4.3% as at March 31, 2016).

Shares of the bank declined Rs 6, or 2.33%, to trade at Rs 251.20. The total volume of shares traded was 395,842 at the BSE (1.10 p.m., Tuesday).