The stock of ICICI Bank rose 9 per cent, post its March quarter results, partly due to lower slippages and partly due to fast-track resolution expected under the NPA ordinance. But fundamentally, not much has changed for the bank on the asset quality front. True, slippages (excluding the cement account of ₹5,300 crore) moderated to ₹5,911 crore in the March quarter from the peak of around ₹8,200 crore in the June 2016 quarter. But the additions to bad loans still remain sizeable. Until the December 2015 quarter, ICICI Bank’s quarterly additions to bad loans were in the ₹1,600-2,200 crore range. At nearly ₹6,000 crore, slippages remain elevated. Also, further slippages from the watchlist are of concern. Overall loan growth was a muted 6.7 per cent. However, on the domestic front, loans grew 14 per cent year-on-year, driven by the retail segment. The stock can come under pressure if slippages mount in the coming quarters.

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