News: ICICI Bank's rating upgraded

(BL 21/07/2006) Mumbai - Moody's Investors Services has upgraded ICICI Bank's financial strength to `C-' from `D+' based on the bank's improving financial position and its enhanced retail franchise. The rating change takes into account the bank's dynamic and successful penetration into the Indian retail market where it has managed to capture a significant share of this profitable business, said a press release from Moody's.

Retail loans and customer deposits now constitute the bulk of ICICI Bank's balance sheet and have been instrumental in gradually improving the bank's profitability and its overall credit risk profile, said Moody's.

The bank's asset quality has improved trend indicating the good quality of its new lending and more specifically the lower credit risk inherent in its retail portfolio. ICICI Bank's funding profile has also become much more attractive with customer deposits almost fully replacing high-cost borrowings. In addition, the bank was able to raise significant fresh equity in December 2005 that will enable it to leverage its growth potential going forward both domestically and internationally, Moody's said.