ICICI Bank Ltd. share price target

ICICIBC reported earnings of Rs6.55bn (PLe: Rs0.25bn) as it marked down DTA of ~Rs29.0bn, while all round contribution to PBT was from strong NII growth, other income and comparatively lower provisions. Bank enhanced its PCR further by 200bps QoQ to 76% (85% incl. technical w.off) and is best in industry, while lower slippages helped asset quality improvement. BB & Below is steady at 2.6% of loans. Improving NIMs, strong PCR with lowering asset quality risks and control on opex keeps the bank on path of strong recovery in earnings leading to 16-17% ROE for s'lone entity by FY22. We...

Net interest income improved 26.8% YoY, partly offset by weakness in other income, which declined 11.1% YoY. On improving asset quality and strong profitability, we maintain our...

Loan grew 14.7% YoY (18% YoY for domestic loans) led by retail loans, particularly unsecured and home loans. Deposit growth was strong at 20.8% YoY, led by term deposits (up 34% YoY) resulting in moderation in CASA to 45.2%.

ICICI Bank saw healthy domestic loan growth of 17.9% YoY with NII outperforming the loan growth at 26.8% YoY. Its asset quality has seen marginal improvement with GNPA coming at 6.49% vs 6.70% QoQ. Its Net NPA has reduced from 2.06% to 1.77% QoQ mainly by increasing the provision coverage ratio (incl technical write-offs) to 83.4% from 80.7% QoQ. Its deposit growth of 20.8% YoY has outperformed the loan growth. Advances ICICI Bank saw healthy loan growth of 17.9% YoY largely driven by Retail growing at north of 22%. Keeping economic uncertainty in mind management is not targeting any loan book growth number. It sees huge potential to increase penetration in...

ICICI Bank's (ICICIBC) early delinquency indicators, as disclosed in its 20F filing for FY19, suggest corporate loan stress has been largely dealt with.

ICICI Bank Ltd reported a stellar set of numbers in its Q1FY20 results, beating our and consensus estimates on all parameters.

As structural changes become more entrenched at the bank (retail loans are ~61% of book, improving corporate asset quality), ICICIBC's reported financials will improve and stabilise. It is the cheapest large PVT bank. Continuous stability/improvement in core parameters underpin our thesis of its trajectory towards normalised earnings/RoAAs. The recent slew of defaults and weakening macros pose some risk on this path. ICICIBCs 1QFY20 show was mildly ahead of estimates. Our healing thesis is mostly playing out (slippages and credit costs continue to moderate, coverage is now best-in class). Maintain BUY with an SOTP of Rs 492 (2.0x Jun-21E core ABV of Rs 189 and sub-value of Rs 113).

income and on stress side over BB & below is gradually moving down which is currently at 2.5% (from 3.0% in Q4). With pick-up in business with high yielding loan share & lost cost funding should help NIMs improvement, while normalizing credit cost should help strong recovery in earnings. We retain...

ICICIBC's 1QFY20 PAT of INR19.1b (est. of INR21.2b), was led by strong NII and controlled opex. Core PPoP grew a healthy 21% YoY (in-line). NII grew 27% YoY to INR77.3b, led by healthy loan growth with additional boost from interest on IT refunds. NIMs stood at 3.62% v/s 3.72% in 4QFY19 including 9bp impact on IT refund (INR1.8b) and 8bp impact due to interest collection from NPLs. On a like-to-like basis, margins moderated marginally by 3bp QoQ. Other income declined 11% YoY as 1QFY19 had stake sale gain from IPRU while core fee income grew ~10% YoY (retail forms 72% of total fees). Total income,...