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Last Updated : Jul 28, 2020 12:06 PM IST | Source: Moneycontrol.com

Buy ICICI Bank ; target of Rs 475: Motilal Oswal

Motilal Oswal is bullish on ICICI Bank recommended buy rating on the stock with a target price of Rs 475 in its research report dated July 25, 2020.

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Motilal Oswal 's research report on ICICI Bank


ICICI Bank's (ICICIBC) 1QFY21 results were in line. The bank prudently used higher treasury/stake sale gains for higher provisions. This led the COVID-19 related provision buffer to 1.3% of loans. Also, provision coverage strengthened further to ~79%. Core operating performance (excluding treasury/stake sale gains) was strong, led by robust NII growth and controlled operating expenses. Moratorium book declined to 17.5% of loans while another ~2% of loans (outside moratorium) were overdue on their Jun'20 EMI. Maintain Buy.


Outlook


We expect credit cost to remain elevated at 3.2%/2.0% for FY21/FY22E. Maintain Buy with an unchanged SOTP-based target price of INR475 (1.9x FY22E ABV for the bank).





For all recommendations report, click here

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First Published on Jul 28, 2020 12:05 pm
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