ICICI Bank Ltd. share price target

Asset quality stable, credit cost normalization in 2nd half of FY22E: Slippages were down at 72 bn v/s 118 bn in the previous quarter. Retail slippages and Corporate & SME slippages contributed 94%, and 6% respectively. Despite significant contribution, retail slippages down 32% sequentially. The standard restructured book stood at 48.6 bn (0.7% of portfolio) v/s 39.3 bn (0.5% of book) in 4QFY21. With an anticipation of covid second wave, the total provisioning expenses up sequentially and stood at 28.5 bn v/s 28.8 bn in the previous quarter. The bank wrote back ~10 bn covid provision this quarter; the total covid provisioning stood 64.25 bn....

ICICI Bank (one of our top picks) reported strong credit growth at 17% YoY (14% YoY FY21) along with stable assets quality under stiff quarter impacted by second Covid-19 wave impact. During Q1FY22, asset quality remain stable with GNPA slightly inching up to 5.15% vs 4.96% QoQ (5.46% YoY) led by higher recoveries (including upgrades). However, slippage ratio increased sequentially impacted by lower collection efficiency. Restructuring under RBI resolution framework stood at 0.7% vs 0.5% of advances; 45% Retail book and 55% Corporate + SME book. Management said restructuring could increase in Q2FY22; however well prepared with 0.9% of covid-19 provisions. During Q1FY22, NII grew by 18% YoY against...

Net interest income (NII) rose 16.9% YoY in Q4FY21, aided by 3.4% YoY growth in interest income and 8.3% YoY decline in interest expenses. Pre provision profit improved 15.6% YoY to Rs. 8,540cr, benefitted by lower employee costs. Net profit jumped ~3x YoY to Rs. 4,403cr, primarily on lower provisions (-51.7% YoY). Outlook remains intact on the back of strong deposit growth, significant lower cost of deposit. Also, improved asset quality with strong liquidity position provide strong base for growth. Hence, we reiterate our BUY...

We reaffirm our BUY recommendation on the stock with a revised price target of INR 805, which represents a potential upside of 34.4% from the CMP of INR 598.8 (FY24 P/Adj BV 1.9x) over a period 24 months.

We maintain a Buy rating on the stock with a target price of Rs 720 (SOTP basis core book at 2.3x FY23E and Rs 161 Subs. Value), implying an upside potential of 26%.

ICICI Bank reported 260% surge in net profit at Rs 4402.61 crore for the quarter ended March 2021 (Q4FY2021). Bank has improved margins, while exhibited strong improvement in cost-toincome ratio in Q4FY2021. The net interest income of the bank has increased at improved pace of 17% with the acceleration in loan growth and better margins. The bank has also posted improved 6% growth in the core fee income for Q4FY2021. Bank has...

moving to better rated assets, renewed underwriting & credit delivery and mining of existing franchise strength. This has led to strong loan & low cost deposit growth leading to better risk-adjusted led profitability. Asset quality has been steady with much low corporate stress, while strong growth in retail in last 2-3 years is seasoning the book which should continue ahead. Strong provision buffer of 100bps & PCR maintained at 77% should help credit cost normalize much faster leading to ROEs moving to 15% by FY23 from 13% currently. We retain BUY with revised TP of Rs700 (from Rs630) based on 2.2x...

Magnificent growth outperformance

Asset quality improves; higher prudential provisioning provides comfort ICICIBC reported strong performance on the business front, with loan growth showing robust trends across Retail, SME, and Corporate portfolio. Core operating performance remains robust even as muted fee income trends and treasury loss resulted in a PAT miss. On the asset quality front, controlled slippages of INR55b and healthy recoveries and upgrades resulted in QoQ improvement in GNPA/NNPA ratio to 4.96%/1.14% (v/s pro forma GNPA/NNPA ratio of 5.42%/1.26%)....