Prabhudas Lilladher's research report on ICICI Bank
ICICIB saw a strong quarter yet again as core PPoP/PAT beat PLe due to better fees and opex. Considering the deposit and asset quality environment, earnings quality has been the best in the sector. Deposit growth was stronger at 5.0% QoQ compared to 3% for the system and CASA accretion of 4.3% QoQ was superior to larger peers. While unsecured pool is seeing stress across the system, the bank’s portfolio has performed better in H1FY25 compared to large private peers as reflected in best-in-class provisions of 43bps (private peers 50-78bps). Hence, provisions over FY24-27E may be lower at 40-50bps (peers 50-65bps).
Outlook
The bank is consistently delivering on protecting core PPoP as the softer NIM environment is being countered by cost control measures. Core RoA of 2.1% is the best in class. Keeping multiple at 3.0x, we raise SOTP-based TP to Rs1,640 from Rs1,520 as we roll forward to Sep’26 core ABV. Reiterate ‘BUY’
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
