Buy ICICI Bank; target of Rs 493: Nalanda Securities

Nalanda Securities' research report on ICICI Bank

ICICI Bank’s posted NII growth of 26.5% YoY to Rs. 7,620 crores in Q4FY19 led by inline growth in the loan book of 14.5% YoY to ~Rs. 5.9L crores and superior improvement in the Net Interest Margins up by 48bps YoY to 3.72% for the same period. The bank in all the industry led parameters has shown phenomenal improvement, as its NPAs has been consistently coming down, loan growth has been improving every quarter, the margins is at multi-quarter high, etc.

Outlook

The focus remains on reducing the costs, improving asset quality and risk management capabilities. The fair value of ICICI Bank along with its subsidiaries comes to Rs. 493 per share and we strongly recommend to buy ICICI Bank.