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ICICI Bank Ltd. | Q3FY13 Result Update




IndiaNivesh Securities Pvt Ltd


31 Jan 2013





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ICICI Bank Ltd. | Q3FY13 Result Update Outperformance continues with healthy margins and asset quality….. Maintain HOLD with the target price of Rs 1329.… ICICI bank’s loan growth came in at 17% yoy (4% qoq) attributed to balanced growth in domestic corporate and retail advances. Deposits growth was slightly lower at 10% yoy with stable CASA ratio of 41%. NIMs surprised positively and improved by 7% qoq (up 37 bps yoy) to 3.1%. Net interest income was ahead of street expectations at Rs 35 bn (up 29% yoy). Asset quality maintained at Gross and Net NPA of 3.5% and 0.8% (down 4 and 3 bps qoq) respectively. Provision coverage ratio at 78% and Net restructured book stable at Rs 41.7 bn qoq. Valuation: ICICI bank has delivered a stellar performance with better than expected growth on all fronts along with improving key metrics. Healthy margins, strong capital adequacy, consistently improving asset quality and strong return profile continue to remain positives for ICICI bank. Further subsidiary performance is also turning favorable resulting considerable growth in other income on consolidated basis. We believe growth in advance is likely to remain ahead of system growth with stable asset quality and superior return profile of 1.7% ROA and 15% ROE. At CMP of Rs 1191, the stock is trading at consolidated P/ABV of 2.1x and 1.9x for FY13E and FY14E respectively. We continue to maintain HOLD on the stock with revised target price of Rs 1329 (2.1x FY14E cons ABV).

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