Accumulate ICICI Bank; target of Rs 450: Dolat Capital

Dolat Capital's research report on ICICI Bank

The bank reported a 5% YoY lower profit (missed our estimates), due to higher credit costs of 230 bps (our estimate was 160 bps). This is despite a lower accretion in GNPA (ex of special cases) and improved asset quality by 105 bps to 6.7%. In other parameters, results were strong with NIM expansion, 17% deposits growth, robust domestic and retail advance growth of 17% at 21% YoY respectively. We expect the operating performance to remain strong but marred by credit costs in near term.

Outlook

At 2x P/ABV of the bank (~78% of value), maintain Accumulate.