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Buy ICICI Bank; target of Rs 700: Motilal Oswal

Motilal Oswal is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 700 in its research report dated January 30, 2021.

February 03, 2021 / 05:27 PM IST
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Motilal Oswal's research report on ICICI Bank

ICICIBC reported a strong 3QFY21, with earnings driven by steady revenue growth, controlled opex, and lower provisions. Loan growth is showing a strong revival in both Wholesale, SME, and Retail, with disbursement in many business segments crossing pre-COVID levels, led by festive demand, improving economic outlook, and strong digital ecosystem build by the bank across business segments. n On the asset quality front, controlled slippages led to a 6bp QoQ rise in the pro forma GNPA ratio, while total restructuring stood at 0.4% of loans (v/s 1% guided earlier). Pro forma PCR stood ~78%, the highest in the industry. It holds unutilized COVID provisions of INR64.7b (~1% of loans), offering comfort on normalization in credit cost. We raise our FY21E estimate by 20% due to lower credit cost while largely maintaining our FY22E/FY23E estimates. Maintain BUY.


We expect RoA/RoE to improve to 1.8%/15.2% for FY23E. Maintain Buy with a revised SoTP-based TP of INR700/share (2.4x Sep-22E ABV for the bank).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 3, 2021 05:27 pm

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