The lending practice is totally different in India compared to the west. They mostly have assets tied to the loan so that they can recover the loan...Besides the culture in India is not to loan beyond your means. The overall banking sentiment with ICICI's exposure to foreign portfolio is what has depressed the stock price. Once the sentiment improves, this stock will go up very fast compared to the western banks where the recovery is going to be very slow because of the fundamental reasons. IBN has not comedown because of the fundamental reasons so it may not take long before it multiples...Until then, just sit tight.. have patience and you should be rewarded richly..
Expectations were for a 30% decline and they massively beat expectations with a GAIN!.
“The results are better than expected and will ensure that investor confidence isn’t shattered,” said R.K. Gupta, who manages 2.5 billion rupees at Taurus Mutual Fund in New Delhi including ICICI shares. “The worst seems to be over for the bank.”
The results should be a DREAM for any US/UK bank - yet ICICI is valued on par with US/UK banks.
Load up below $20. IBN should head to 40s in couple of months.