ICICI Bank Ltd. share price target

Maintain BUY with a TP of Rs 359 (1.7x Mar-20 core ABV of Rs 150 and subs value of Rs 114). After the rough FY18 ride, 1QFY19 saw ICICIBC reporting its first ever net loss (~Rs 2.3bn). The earnings miss was largely owing to elevated provisions (~Rs 59.7bn, 2.3x YoY) even as the stake sale in ICICI Pru (~Rs 11.1bn) provided some respite. The one-off interest income (on a steel a/c recovery) cushioned the NIM dip (3.19%, down 5bps).

ICICI Bank reported a net loss of INR 1.1bn in 1QFY19, against our estimates of INR 16.8bn of profit as management opted to increase provision coverage on NPLs by c.640bps to 54.8% (provisions of INR20.4bn above estimates). ICICI Bank also disclosed Rs246bn of BB&below; exposures in the loan book, which comprise of ~INR125bn of loans that were part of the earlier disclosed drilldown list, restructured loans as well as loans under various dispensations. The new disclosures, worth Rs121bn, are exposures to non-stressed sectors and more granular in nature. As a result, we do no expect significant changes to our provisioning estimates for FY19-20. Given the upfronting of provisions, the haircuts to...

ICICI Bank is India's largest private sector bank with total consolidated assets of `11,242.81 bn and profit after tax of `7,712crs. At the end of FY18. ICICI Bank currently has a network of 4,867 Branches and 14,367 ATMs across India. It offers a wide range of banking products and financial services to corporate and retail customers through a...

ICICI Bank witnessed a flat movement in its core revenue in the 4QFY18. Net interest income just inched up by 1%yoy to `6,022cr. This was due to a decline in advances from overseas branches and a muted movement in advances to corporates. Other income climbed up by 88% primarily due to a one-time income arising from sale of investments. Al..

Maintain BUY with a TP of Rs 377 (1.7x Mar-20 core ABV of Rs 150 and sub-value of Rs 122). A ballooning of GNPAs in 4QFY18 (102bps QoQ) overshadowed some significant positives for ICICIBC. Domestic loan growth sustained (+15% YoY) while NIMs improved 10bps sequentially (3.24%). The watchlist nose-dived to ~Rs 47.2bn (vs ~Rs 190.6bn in 3Q) and net stress reduced substantially (~6% vs 9.9% YoY). Creditable CASA addition (Rs 431bn in FY18), steady growth in retail loans (21% YoY), fees (+16%) and controlled opex (+9%) were also encouraging.

Asset Quality Pressure at Record High; Earnings to Remain Muted Led by accelerated NPA recognition of Rs99.7bn from loan under different restructuring schemes of the RBI, ICICI Bank has reported the highest ever fresh slippages of Rs157.4bn (+260% QoQ) in 4QFY18. Even adjusted for one-time slippages due to revised framework on stressed assets resolution by the RBI, its fresh slippages surged to Rs57.7bn vs. Rs43.8bn in 3QFY18. Resultantly, the Bank's provisioning expenses spiked by 128.6% YoY and 85.6% QoQ to Rs66.3bn. Further, its core operating profit dipped by 18% YoY and 17.1% % QoQ to Rs41.9bn led by lower other income and muted growth in NII. Despite continued growth in domestic loan...

ICICI Bank's (ICICIBC) 4QFY18 PBT declined 40% QoQ (-60% YoY) to INR8.9b(53% miss) due to elevated provisions of INR66.3b (5.2% annualized credit cost), despite an INR33.2b capital gain from stake sale in I-Sec. Tax write-backs of INR1.3b led to PAT of INR10.2b (-38%/-50% QoQ/YoY). NII growth stood at 5.5%/1% QoQ/YoY (3% beat), driven by 1.4%/10%QoQ/YoY loan growth and 10bp expansion in reported NIM to 3.24%. Core other income grew 19% YoY to INR29.9b, while total other income stood atINR56.8b. Total opex grew 10%/8% QoQ/YoY to INR41.8b (core CI ratio stood at 46.4%, +310bp QoQ).

little, too late: The ICICI Bank board has issued a statement, coming out in support of the management, effectively denying any wrongdoing in the transaction. While the board making the statement, instead of the management, adds credence, we believe that there are too many unresolved issues/ questions...

ICICI Bank Ltd. (ICICIB) is the largest private bank in India with business size stood at Rs10,227.9 bn as of Dec'31 2017. While the under provisioning for NCLT List 2 and RBI revised norms of stressed assets to increase provisions in the near term which will impact profitability, ICICIB is likely to get benefit on the back strong focus on retail segment, better rated corporates, robust liability franchise and declining slippage. The impact of NCLT loans provisioning and slippage from restructuring schemes would be limited given the huge business size of the bank. Further, the latest correction makes stock valuation attractive for investment perspective. Our...

At the current market price, the banks core banking business (after adjusting value of subsidiaries) is trading at 1.1x FY20E ABV. We believe strength of liability franchise (CASA-50%), shift in loan mix towards retail assets and better rated companies, Strong capitalization (tier I of 14.6%), and steady improvement in stress loan and go..