ICICI Bank Ltd. share price target

ICICI Bank (one of our top picks) reported strong set of numbers with a) stable asset quality (Proforma), b) Restructured book at 0.4% and c) PAT growth at 19% YoY (up 16% QoQ) during toughest quarter Q3FY21. Asset quality on Proforma basis remains stable with GNPA at 5.42% vs 5.36% QoQ; however slippage ratio was higher on sequential basis. Restructuring under RBI resolution framework stood at 0.5% of advances, including corporate cases and company guided for less than 1% of advances for FY21. Management said collection efficiency has improved during Q3FY21 vs 97% of pre-covid levels for retail portfolio (Q2FY21). NII grew by 16% YoY against a loan growth of 10% YoY; margins...

ICICI Bank's (ICICIBC) Q3FY21 PAT at Rs 49.3bn (+19% YoY) beat estimates on strong 17% growth in operating profit.

ICICI bank held its Virtual Analyst Meet which showcased its digital strategy, along-with eco-system banking and data analytics, to enhance its core operating profits across verticals. Bank re-iterated its strategy of One Bank, One ROE'.

Tech & digital adoption already providing results: In retail banking, (i) secured loans disbursements has surpassed 133% of pre-COVID Feb'20 levels with Auto loans 164%, mortgage loans 139% & 2W 118% (ii) Digital initiatives of FY20 improved insta & mobility personal loans delivery to 62% from 32% in FY19 and in H1FY21 jumped to 88%, while in credit cards nondigital origination is 23% v/s 66% in FY20 and 80% in FY21. In Business banking, digitizing with integrated APIs, 3x YoY increase in customer acquisition, 19% contribution to digital payments through corporate internet banking and 54% growth in CA average balance YTD Oct'20 for active API...

We attended ICICI Bank (ICICIBC)'s Analyst Day, wherein the bank highlighted the progress in its different businesses and how the bank is positioned to capitalize on the exciting opportunities in the space. The topics of discussion constituted (a) how the management is trying to build a strong bank with best-in-class digital capabilities, (b) using technology to accelerate growth across business verticals and maintaining healthy operating metrics, (c) focusing on identifying potential micro markets for expansion, (d) strong demand recovery in consumption loans, with disbursements in secured loans surpassing pre-COVID levels, and (e) how asset...

ICICI Bank has reported stable performance during Q2FY21, the sharp 61% QoQ decline in provisions, led to a sharp jump in PAT at Rs 4,251 cr (+64% QoQ). NII for the quarter grew by 16% YoY/1% QoQ to Rs 9,366 cr, driven by loan growth of 6% YoY. PPOP increased by 20% YoY to Rs 8,261 cr, due to strong NII growth and decline in OPEX (-5% YoY). Other income for the quarter declined by 4% YoY to Rs 4,028 cr, supported by treasury gains of Rs 542 cr (including Rs 305 cr from stake sale in ICICI Securities). On the other hand, fee income picked up strongly by 49% QoQ. The bank...

Advances up 6.4% YoY; Deposits growth 19.6% YoY in Q2FY21. NIM further contracted by 12bps QoQ to 3.57% as continued lockdowns translated to lower deposit growth. PAT soared 549.1% YoY helped by lower tax expenses and higher interest income....

ICICI Bank reported robust moderate 549% growth in net profit at Rs 4251.33 crore for the quarter ended September 2020 (Q2FY2021). Bank has posted healthy 16% growth in net interest income, while exhibited strong improvement in cost-to-income ratio in Q2FY2021. Oneoff revenues from sales of stake in securities business subsidiary also boosted the non-interest income of the bank. Bank has showed stable business growth, while CASA ratio improved in Q2FY2021. The asset quality of the bank has improved in Q2FY2021. Asset quality improves: Bank has exhibited improvement in asset quality in Q2FY2021 with strong recoveries and write offs of loans. Fresh slippages increased to Rs 3017 crore in Q2FY2021 from Rs 1160 crore a quarter ago and...

We recommend a BUY on ICICI Bank with a Target Price of Rs 453, an upside of 10% from CMP of Rs 412 and Stop Loss Rs 387.

The business outlook has improved across most segments. We maintain Buy on the stock with target price of Rs 504 (SOTP basis core book at 1.9x FY22E and Rs 141 Subs. Value).