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.
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.
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).
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