ICICI Bank Ltd. share price target

yoy. Retail fee income grew at a healthy rate and contributed 65% of fee income. Treasury profits came in higher at Rs 2.2bn (Rs 1.4bn in Q2FY15). Going forward, fee incomewillgrowatlowerdoubledigits,drivenbyretailfeeincome....

modest loan growth. The bank also benefitted from strong treasury gain (Rs7.26bn) and continued repatriation gains (Rs1.8bn) which further boosted revenue growth. NIMs have improved by 11bps QoQ to 3.57% (3.48% for FY15) though fee growth remained soft. Management has guided for a double-digit fee growth in FY16, led...

ICICI Bank reported a stable quarter with largely inline earnings

ICICI Bank (ICICBC) reported a stable quarter with largely inline earnings. Led by lower slippages (Rs 16.7bn, w/w Rs 2.9bn from restructured book), gross stressed asset additions at Rs 36bn were lower QoQ. However, restructuring was higher QoQ at Rs 19.6bn. NIMs continue to remain healthy led by overseas NIMs (driven by lower CoF).

ICICI Bank's earnings were below our estimate with a net profit growth of 12% yoy to Rs 29.7bn (vs. our estimate of Rs 30.2bn). Gross NPAs declined in Q1 because of lower slippages from the restructured loan book. Fresh restructuring was Rs 19.6bn and with...

ICICI bank's Q1FY16 results were marginally above estimates as the earnings grew by 12.1% YoY (1.9% QoQ) to Rs 29.8 bn led by stable NII growth. NII grew by 13.9% YoY (flat QoQ) led by 15.2% YoY (3.2% QoQ) growth in advances whereas NIMs remained stable at 3.54%.

ICICI Bank is India's 2nd largest bank with Assets of INR 7.4tn. Network: Branches 4052, ATMs 12811, presence in 19 countries. Focus is on retail lending representing ~40% of total loans while International and Corporate are the new growth drivers. The bank holds near market leadership in almost all its businesses including Mortgages, Auto Loans, Commercial Vehicle loans, Life Insurance, General Insurance, and Asset Management. Its subsidiaries ICICI Venture Funds, ICICI Pru...

Domestic credit, 75.7% of total credit, should grow at ~1820% inFY16, drivenby the retail segment. Loan book of overseas branches should see moderate growth of ~8%. Withinthedomesticloanbook,retailcreditbookshouldgrow~25%whereasnonretail...

Retail advances to drive credit growth: Retail credit is expected to drive the advances growth in FY16 which is expected to grow by 17-18% led by 25% growth in retail advances (42.5% of total advances), followed by 10-15% growth in corporate advances (28.8%) and ~ 10% growth in overseas advances (24.3%) on constant $ basis.

ICICIBC has gradually improved the B/S mix with higher contribution from granular business (Retail & SA). Further, improvements are visible in PL with better NIMs and higher contribution from retail fees. While bank?s strong liability franchise, increasing retail penetration & capital position provide comfort, its concentrated exposure to leveraged cos and risky sectors is an overhang. ICICIBC trades at ~1.7x Core-ABV on FY17E. Maintain BUY.