Arihant Capital 's research report on ICICI Bank
ICICI Bank maintains a stable performance amid all the chaos of advance provisioning by major banks, well beyond RBI mandated 5% provisioning for Covid-19. NII increased by 19.9% YoY/4.0% QoQ to Rs 9,280 Cr, PPOP increased by 71.4% YoY/45.8% QoQ to Rs 10,776 Cr and Net Profit increased to Rs 2,599 Cr, up by 3 6.2% YoY /112.8% QoQ. Other income increased on account of stake sale of Rs 3,036 Cr in the insurance subsidiaries. The bank has taken precautionary Covid-19 provisions of Rs 5,550 Cr during Q1FY21 (total corona provisioning Rs 8,275 Cr). It remained 17.5% under moratorium down from 30% at March end.
ICICI Bank is currently trading at a 1.9x P/Adj. BV FY22E. We assign a P/adj. BV multiple of 1.7x on FY22E adj. BV of INR 185 for standalone bank and use a SOTP approach to value its subsidiaries, arriving at a Target Price of INR 425 with an Accumulate rating.
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