ICICI Bank Ltd. share price target

Quick Research Note

In Q1FY21, Advances grew 6.5% YoY to Rs. 631,150cr, partially impacted by lockdown in April and May); Deposits grew by +21.3% YoY. Net interest margin contracted 18bps QoQ to 3.69% on slower growth in deposits led by subdued economy. Reported PAT was up 36.2% YoY. As the economy has largely opened up since June 2020, we expect double digit growth trajectory in advances along with healthy deposits. The bank's asset quality remains intact and digital transformation should aid growth. We reiterate our BUY rating on the stock with a...

MPHL: Strong deal wins; DXC remains soft. ICICIBC: Prudent provisions reassuring

ICICI Bank (ICICIBC) reported better than expected performance in Q1FY21 with NII up 19.9/4% YoY/QoQ and Core PPOP up 14.8% YoY. Loan growth moderation (up 6.5% YoY), NIM pressure at 3.7% on higher liquidity and muted fee income was largely expected.

ICICI Bank (ICICI) reported an impressive Q1FY21 earnings with higher COVID-19, related provisions getting absorbed by profit from stake sale in its insurance businesses, along with lower tax.

ICICI Bank reported 36% growth in net profit at Rs 2599.15 crore for the quarter ended June 2020 (Q1FY2021) driven by strong growth in the net interest income as well as non-interest income. The bank has reduced expenses, support sharp increase in operating profit. The net interest margins of the bank has declined on sequential basis due to high liquidity, but it was higher over a year ago level. The bank has witnessed decline in the core fee income due to lockdown and moderation in loan growth. The business growth of the bank was steady at 14% end June 2020 mainly driven by surge in...

NIMs at comfortable levels, costs came down as well: The bank's NIMs stood at 3.69% (up +16bps YoY/-18 bps QoQ) while the Cost of Funds stood at 4.61% (down -62bps YoY/-31bps QoQ) for Q1FY21 reflecting the fallen costs and increasing spread for banks amid the interest rate cuts by RBI. The bank's CASA fell to 42.5% (45.1% in Q4FY20), albeit due to...

ICICI Bank's core PPOP was 15% higher than our estimate, courtesy a better NII growth and a relatively resilient fee performance despite substantially lower activity levels....

declined by 18bps QoQ to 3.69% owing to strong flow of deposits (21% YoY/4% QoQ was best amongst banks) creating large liquidity position. Moratorium book which has been focus point to track asset quality & collection was down to 17.5% of loans v/s 30% in Apr'20 end and has Rs83.0bn of COVID provisions or 1.42% of domestic loans. Strong liability base, strong capital levels (raising more equity ahead), steady asset quality with strong PCR of 78% remains a strong focal point, while real asset quality hits, if any, only will be visible from Sep'20 end. We retain BUY with revised...

25 July 2020 ICICI Banks (ICICIBC) 1QFY21 results were in line. The bank prudently used higher treasury/stake sale gains for higher provisions. This led the COVID-19 related provision buffer to 1.3% of loans. Also, provision coverage strengthened further to ~79%. Core operating performance (excluding treasury/stake sale gains) was strong, led by robust NII growth and controlled operating expenses. Moratorium book declined to 17.5% of loans while another ~2% of loans (outside moratorium) were overdue on their Jun20 EMI. Maintain PAT grew 36% YoY to INR26b (in-line), despite higher provisions. The bank prudently made provisions of INR55.5b due to COVID-19 (v/s INR27.25b in 4QFY20), taking the total COVID-19 provisions to INR82.8b. NII grew 20% YoY (4% QoQ) to INR92.8b.