New Delhi: The weakness continues on ICICI Bank. Though the Bank management says they have no direct exposure to subprime assets, analysts seem wary. Merrill Lynch has gives it a downgrade while Morgan Stanley says losses could be deeper.
"My understanding of all that happened is ICICI took a ride down based on what is most likely their exposure to Indian corporates. Institutions such as ICICI which conceivably has some exposure to credit defaults by blue chip Indian corporates is being forced to take a ride down. I don't think that's a big deal one way or another. That is just a fallout of what is happening one way or other in terms of bursting of the credit bubble," Alok Sama, President & Founder, Baer Capital said.
On the other hand Emkay Share & Stockbroker MD Krishna Kumar Karwa said that ICICI Bank shares are still a good buy.
"As far as ICICI Bank is concerned, we have a buy on it and our target is closer to 1400+. So at 975 or 950 these levels it is a good investment opportunity. Having said that the sentiment being what it is there could be some more corrections and we do not have too much details about further write off etc. that can be expected. For some time it is going to be more sentiment driven than factual," Karwa said.
The Bank has losses of over $260 million related to the subprime crisis.
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