HDFC Securities' research report on ICICI Bank
A ballooning of GNPAs in 4QFY18 (102bps QoQ) overshadowed some significant positives for ICICIBC. Domestic loan growth sustained (+15% YoY) while NIMs improved 10bps sequentially (3.24%). The watchlist nose-dived to ~Rs 47.2bn (vs ~Rs 190.6bn in 3Q) and net stress reduced substantially (~6% vs 9.9% YoY). Creditable CASA addition (Rs 431bn in FY18), steady growth in retail loans (21% YoY), fees (+16%) and controlled opex (+9%) were also encouraging.
Outlook
We expect RoAAs to pull back 36bps over FY18-20E as a result. Maintain BUY with a TP of Rs 377 (1.7x Mar-20 core ABV of Rs 150 and sub-value of Rs 122).
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!
