ICICI Bank (ICICIB) is well prepared among its peers to weather the COVID-19 storm with a) highest PCR (at 75%), b) highest Covid-19 provisions (1.3% of advances), and c) higher home loan portfolio (31% of advances). Strong liability franchise and higher Tier I capital ratio will advantage bank when the economy growth recovers. We expect credit growth for the bank to remain higher than the banking industry led by market share gain. We expect loan growth and margin to improve, thus resulting into 50bps YoY improvement in ROA over FY20- FY22E to 1.3%. Initiate on ICICB with a BUY rating and a target price of Rs.460, valuing parent business at Rs.343 (1.55X P/ABV FY22E) and rest for the subsidiaries. While the uncertainty over the impact of...