ICICI Bank up 8% on Credit Suisse booster, provision rule tweak

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26 Aug, 2025 12:21

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Moneycontrol Bureau Shares of ICICI Bank jumped 8 percent intraday on Thursday, buoyed by a Credit Suisse upgrade and a media report quoting unnamed sources that the Reserve Bank of India has trimmed the list of firms whose loans need to be provisioned for.The Bank Nifty is up 2 percent as the new rule on provisioning is expected to boost fourth quarter earnings of non-performing asset (NPA) saddled banks.Credit Suisse sees some relief for corporate lenders because of the stabilsing of the steel cycle.“Bottoming of the steel cycle will be a relief to multiples of corporate lenders,” Credit Suisse said in its note. “Given high under-provisioning and under-recognition of chronically over-leveraged borrowers, we remain cautious on corporate lenders Credit Suisse said, adding, “however, the private corporate lenders (ICICI, Axis) with adequate pre-provisioning profitability and capital buffers to absorb the rise in credit costs should see a re-rating.”Earlier this week, Morgan Stanley had downgraded ICICI Bank to ‘equal weight,’ saying profits could be under pressure.“Our downgrade of ICICI is driven by further EPS (earnings per share) estimate cuts,” the Morgan note said.“We now expect EPS growth to be flat during FY16-FY18, so rerating could be tough,” the note said.At 10:25 hrs ICICI Bank was quoting at Rs 253.00, up Rs 14.85, or 6.24 percent on the BSE.