ICICI Bank Ltd. share price target

We maintain a BUY rating on the stock with a revised target price of Rs 1,000 (SOTP basis core book at 2.8x FY24E ABV and Rs 173 Subsidiary Value), implying an upside of 34% from CMP.

crore a quarter ago and dipped from Rs 11818 crore in the corresponding quarter last year. upgradations and write-offs were strong at 3.42% (annualized percentage of advance) in the quarter ended March 2022 from 4.08% in Q4FY2021. Retail NPA`s declined 15% yoy and 6% qoq to Rs 12832 crore at end March 2022. Excluding NPAs, the total fund based outstanding to...

Balance sheet further strengthened as asset quality materially improved with GNPA reducing by 53bps QoQ mainly led by higher recoveries, while buffer provisions increased and OTR/BB & below pool reduced. CAR is strong with CET-1 at 17.6%. ICICIBC has consistently outperformed with earnings quality improving each quarter. We envisage a RoE of 15.6% for ICICIB in FY24E (16.8% for HDFCB) and valuation discount to HDFCB should narrow from 12% to 7%. Valuation at 2.2x FY24E core ABV is attractive and assigning a 3.0x...

One of the highest ever quarterly RoAs

ICICIBC reported an all-round improvement in operating performance, with core PPOP up 21% YoY (excluding dividends), margin improving by 4bp QoQ to 4%, and robust asset quality driving a sharp decline in credit cost, even as the bank increased its contingent provision buffer by INR10.25b. The bank reported a RoA/RoE of 2.1%/17% in 4QFY22. Business growth continues to gain traction, with a jump of 17% YoY and 6% QoQ, led by Retail, SME, and Business Banking. RoE crossed the 15% mark in 3Q and 4QFY22 saw a further rise (~170bp). While the stock has...

Honeycomb of value

CASA deposits grew by 21.6% YoY and average CASA ratio stood at 44.9% (vs. 41.8% in Q3FY21). Total loans increased 16.4% YoY. Although the quarter saw inflated costs and stress on margins, we remain positive on the stock with solid balance sheet and necessary steps taken to make product mix favorable. Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 944 based on SOTP. Lower provision aids bottom-line In Q3FY22, ICICI Bank reported Net Interest Income of Rs. 12,236cr (+23.4% YoY) and...

Augmented risk architecture to enhance overall performance with total CAR estimated at robust 19-20% levels, enabling growth

December 2021 (Q3FY2022). Bank has maintained healthy margins, while exhibited strong improvement in fee income in Q3FY2022. Bank has showed strong business growth, while CASA ratio continued to improve in Q3FY2022. Bank has also continued to expand its distribution network, while enhanced focus on digitalization....

BB & below exposure stood flat at 1.7% of net advances, 9) the bank's net advances grew by 16.4% YoY and 6.4% sequentially; and 8) deposits crossed 10tn mark and grew by 5.5% QoQ with 80bps improvement in average CASA at 44.9%. Moreover, the credit cost of 99bps for the quarter. Factoring stable balance sheet growth and credit cost of 1.25% in FY22E, we estimate...