Buy ICICI Bank; target of Rs 364: HDFC Securities

HDFC Securities is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 364 in its research report dated October 28, 2017.

November 03, 2017 / 16:13 IST

26 Aug, 2025 12:21

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HDFC Securities' research report on ICICI Bank

After quite a few uninspiring quarters, ICICIBC showed evidence of recovery in 2QFY18. Loan growth resumed (+13% QoQ in the domestic book), costs crawled (+3% QoQ) and NIM was stable (3.3%). Slippages, mercifully, were at an 8-qtr low. Management utilised profits from the subsidiary stake sale to beef up coverage (59.3%, +410bps QoQ) and provided for NCLT a/cs two quarters in advance. While slippages have trended down for the last couple of qtrs, we will closely monitor asset quality divergence, slippage from the watchlist and provision requirements (for the 2nd NCLT list). Meanwhile, increasing granularity in the Retail franchise (assets and liabilities) and steady value accretion in subsidiaries are encouraging.

Outlook
A probable easing of corporate stress and granular growth augur well for ICICIBC hereon. Maintain BUY with a TP of Rs 364 (1.8x Sept-19 core ABV of Rs 142 + subs-value of Rs 107).

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