Buy ICICI Bank; target of Rs 1153: Way2Wealth

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Buy ICICI Bank; target of Rs 1153: Way2Wealth

Way2Wealth is bullish on ICICI Bank and has recommended buy rating on the stock with a target of Rs 1153 in its November 01, 2011 research report.

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RELATED NEWS Buy Bajaj Electricals; target of Rs 262: MLR Securities Buy ICICI Bank; target of Rs 990: A C Choksi Buy Jyoti Structures; target of Rs 78: Angel Broking ALSO READ See previous views by Way2Wealth See what other Experts & Brokerages are saying about ICICI Bank See messages about ICICI Bank ICICI Bank BSE | NSE 31/05/12 Are Mutual Funds betting on ICICI Bank?

Way2Wealth is bullish on ICICI Bank and has recommended buy rating on the stock with a target of Rs 1153 in its November 01, 2011 research report.

"ICICI Bank (ICICIB) reported a PAT of Rs.15.03 bn, up by 21.6% yoy & 12.8% qoq. The profits were mainly driven by lower provisions. Net Interest Income of the bank stood at Rs.25.06 bn, up by 13.7% yoy & by 4% qoq. Margins remained the same as previous quarter at 2.6%, although domestic NIM decreased by 8bps to 2.92% qoq, while international NIMs improved by 19bps to 1.09% qoq. CASA of the bank improved to 42.1% in Q2FY12 as against 41.9% in Q1FY12. CAR of the bank stood at 19% with Tier I at 13.1% in Q2FY12. The asset quality has improved with GNPA at 4.1% in Q2FY12 as against 5% in Q2FY11.

ICICIB's business grew by 14.8% yoy to Rs.4,790 bn in Q2FY12 with deposits growing by 9.9% yoy to Rs.2,451 bn and advances growing by 20.5% yoy to Rs.2,340 bn in Q2FY12. However, on a sequential basis, deposits grew by 6.2% while CASA grew by 6.8% and advances grew by 6%. Retail book now constitutes 35% of the loan book while the unsecured portfolio in retail book has come down to 4.6% of the retail book in Q2FY12 from 5.6% in Q1FY12.

ICICIB's NIMs remained stable at 2.6% in Q2FY12 in line with Q1FY12. However, domestic NIMs declined slightly to 2.92% in Q2FY12 while international NIMs improved to 1.09% in Q2FY12. Going ahead, the management has guided NIMs at 2.6% for FY12E with international NIMs improving to 1.2% by FY12E.

ICICI Bank continues to demonstrate strong performance despite the challenging economic conditions. We maintain our 'Buy' recommendation with a SOTP of Rs.1,153 which is an upside of ~24% from the CMP," says Way2Wealth research report.

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To read the full report click on the attachment