ICICI Bank Ltd. share price target

Earnings in 2QFY21 acknowledge our conviction that ICICI Bank is preparing for sustainable, prudent and cautious growth despite some exceptional hiccups (Overdue amount of ~3% higher than normal run rate) owing to COVID. The bank has reported its 2QFY21 results with 10 key pointers : 1) The collection efficiencies of overall book stood at 97% of Pre-COVID level, 2) NII growth of 16.2% YoY, with headline NIMs (Domestic: 3.72% & Overall: 3.57%) de-growth of 8bps sequentially owing to higher liquidity available (LCR: 150%), 3) PPoP growth of 20.2% YoY and degrowth of 23.3% sequentially owing to higher base in the previous quarter (stake sale boosted the other income in 1QFY21), 4) Higher slippages (30.1bn v/s 11.6bn) led by retail slippages (58% of total slippages), 5) NNPA further down 23bps to 1%, 6) PCR (excluding technical write-offs)...

ICICI Bank (ICICIBC) reported a steady quarter, with earnings driven by steady revenue growth, strong control on operating expenses, and lower provisions. The bank prudently used treasury gains from the 2% stake...

ICICI Bank reported strong profitability with PBT growth at 20% YoY; PAT growth (up 550% YoY) not comparable due to one off impact of deferred tax in corresponding quarter last year. Asset quality on proforma basis improved with GNPA at 5.36% vs 5.46% QoQ; however slippage ratio was higher on sequential basis. Management said collection efficiency is at 97% of pre-covid levels for retail portfolio. NII grew by 16% YoY against a loan growth of 6% YoY; margins decline due to higher liquidity. PPoP grew by 20% YoY as cost to income ratio improved (38% vs 44% YoY). (ICICIB) is well prepared among its peers to weather the COVID-19 storm with a) highest PCR (at 81.5%), b) highest Covid-19...

ICICI Bank (ICICIBC) reported healthy Q2 PAT of Rs 43bn led by 20% YoY growth in operating profit.

ICICI Bank posted strong results for Q2FY2021, with operating performance better than expectations, improvement in collections efficiency (m-o-m) and q-o-q improved asset quality, even on proforma basis. Improving collection efficiency, with strong traction in core fee income (up by 49% q-o-q); retail portfolio up by 12.8% y-o-y and 6.2% q-o-q, indicates improving business activity. Healthy pick up in ROE at 13.2% (from 8.9% in Q1FY2021) with higher CRAR at 18.5% (up 250 bps from Q1FY2021) make a strong quarter Bank is available at 1.7x/1.5x its FY2022E/FY2023E BVPS, but adjusting for...

Incorporated in 1994, ICICI Bank is one of India's largest bank

We have identified and decoded a few key trends from the Q1FY21 results of major private sector banks and tried to summarise the same below.

Strong COVID & Contingent provisioning and healthy 1QFY21 earnings acknowledge our conviction that ICICI Bank is preparing for sustainable, prudent and cautious growth despite some exceptional hiccups (moratorium book 17.5% V/s 30% earlier) owing to COVID. The bank has made COVID provisioning of 82.75bn in the previous two quarters. The total contingent provisioning (COVID + Standard + General) stands 2.1% of net advances which is the highest among peers. Considering the MORAT (17.5%) we expect ~2.5% of the book may come under stress post moratorium ends. The contingent provisioning is likely to be adequate to mitigate the stress. Furthermore, the bank has reported healthy 1QFY21 results with the key pointers...

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...