Sell ICICI Bank; target of Rs 200: Religare

ICICIBC’s consolidated net restructured assets including non-funded exposure rose 58% in FY16 (to 2.6% of consol. loans vs. 2% of standalone). As per the 20F filing, non-funded exposure to restructured accounts stood at Rs 44bn. NPA coverage including restructured assets stood at 39% which would keep credit cost high. Stressed loans in sectors excluded from the watchlist are: construction – 51% share in gross advances (40% in FY15), shipping – 36.7% (25.6%), gems & jewellery – 15.9% (11.8%), textiles – 23.9% (17.9%) and petroleum – 10.5% (2%). Maintain SELL.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.