Buy ICICI Bank; target of Rs 1094: Anand Rathi

2022年12月1日06:30 UTC

Anand Rathi's research report on ICICI Bank

ICICI Bank Limited has reported a net interest income growth of 26% in its Q2-FY23 standalone results at ₹147.8 billion as against ₹116.9 billion in Q2- FY22, driven by advances growth of 23% and a net interest margin was 4.31% in Q2 FY23 compared to 4% in Q2 FY22 and 4.16% in H1 FY23. NonInterest Income, excluding treasury income increased by 17% YoY to ₹51.39 billion in Q2-FY23. Total advances increased by 23% YoY to ₹9,385.6 billion as on September 30, 2022 from ₹ 7,649.4 billion as on September 30, 2021. The year-on-year growth in domestic advances was 24% in Q2-FY23. The Bank has continued to leverage its strong retail franchise, resulting in a 24.6% YoY growth in the retail loan portfolio in Q2-FY23 and 6% sequentially at September 30, 2022. Total deposits increased by 12% YoY to ₹10,900 billion at September 30, 2022. Average current account and saving account deposits increased by 16% YoY in Q2-FY23. The average CASA ratio was 45% in Q2-FY23 & reported a growth of 12.7% YoY. Period end term deposits increased by 11% YoY to ₹5,821.7 billion as on September 30, 2022. Provisions (excluding provision for tax) were ₹16.4 billion Q2-FY23 compared to ₹ 27.1 billion in Q2-FY22. Provisions for Q2 FY23 include contingency provisions of ₹15 billion made on prudent basis.

Outlook

We remain positive on ICICIBANK, considering a strong balance sheet, strong credit growth, continuous reduction in NPA, adequate capital adequacy, strong growth in advances, high casa ratio and improving asset quality. We maintain our BUY rating on the stock with a revised target price of ₹1,094 per share.

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ICICI Bank - 01 -12-2022 - anand