S&P ratings for ICICI Bank post-merger

By Our Banking Bureau | 02 May 2002

1
Mumbai: Standard & Poors (S&P) has that it has assigned its BB long-term and B short-term rating to ICICI Bank following the final Reserve Bank of India (RBI) approval for its amalgamation with ICICI Ltd. S&P said the outlook is negative and the BB/negative/B ratings on ICICI Ltd have been withdrawn.

The RBI also has given ICICI Bank some concession with respect to compliance with priority-sector lending requirements and with the equity exposure ceiling of 5 per cent on advances, says Financial Services Ratings director Peter Sikora. The bank, however, will be required to adhere to all other regulatory requirements.

ICICI Bank has adopted fair valuation of ICICIs assets under the purchase method of accounting for mergers (under Indian GAAP), with the fair value review of the loan portfolio being completed by an external valuer.

Additional provisioning will be made to cover non-performing loans and restructured assets following completion of the fair valuation process. Additional provisioning against standard assets will also be raised as a precautionary measure, says Sikora.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers