ICICI Bank has re-emerged as a strong retail bank over the years, with a clear focus on profitability vs. growth, which coupled with its strong liability franchise, PCR, capital and stable management, makes it the best fit for the current tough times.

Emkay said, ''Although Yes Bank's failure has been averted, weak economic environment, along with Covid-19 scare, could further hurt systemic growth/asset quality. However, ICICI remains well-placed to manage these shocks and continue on its RoE improvement trajectory.''

The banks corporate asset-quality stress may remain elevated, while select segments in retail too are showing signs of stress. However, higher PCR and improving operating profitability should help absorb these shocks. The bank has guided for 110-130bps LLP in FY21E.

''ICICI's strong delivery on RoEs (15-16% over FY21-FY22E) from sub-10%, coupled with its re-emergence as a strong retail-cum-digital bank and the recent correction, makes it an attractive Buy. We trim TP to Rs.600 from Rs.650, lowering earnings estimates and P/ABV given the risk-off environment,'' it added.

Shares of the company declined Rs 10.85, or 2.96%, to settle  at  Rs 356.00.  The total volume of shares traded  was  2,274,142 at  the BSE (Wednesday).