ICICI Bank share price falls 5% as S&P revises outlook to negative
BusinessToday.In April 20, 2020
ICICI Bank share price fell almost 5% intraday on April 20 after global rating agency S&P revised the private lender's outlook to negative from stable on the potential impact of the coronavirus outbreak.
S&P Ratings said it would lower the rating on ICICI Bank if the economic headwinds increase sufficiently for the brokerage to lower their assessment of India's Banking Industry Country Risk Assessment.
Post the outlook update, shares of ICICI Bank fell 4.99% to the intraday low of Rs 357.2 on BSE against the last closing of Rs 375.95.
ICICI Bank shares trade higher than 5 and 20-day moving averages but lower than 50, 100 and 200-day moving averages.
The rating agency said it would revise its outlook on ICICI Bank to stable if the economic headwinds to India's banking system abate or if ICICI Bank demonstrates improved asset quality and performance relative to domestic and international peers.
The brokerage notes that the company's stressed assets have reduced over the past two years.
"We could also downgrade the bank if its stressed assets rise significantly beyond the system average over the next few quarters," S&P added later.
As per the rating firm's estimates, Indian banks' asset quality is likely to deteriorate, amid rising credit costs and would result in a decline of profits. The rating firm has revised its economic risk trend for the banking system to negative from stable.
Shares of ICICI Bank closed 3.84% lower at Rs 361.50.