Buy ICICI Bank; target of Rs 950: Emkay Global Financial

Emkay Global Financial's report on ICICI Bank

ICICI Bank is focusing on hyper-personalized digital offerings - be it retail, SME or corporate - to improve customer experience and thus capture customer ecosystem/life-cycle returns while remaining fair to the customers, as it has proven in its insurance business. The bank has done away with product-linked executive positions and KRAs, as the focus has moved to customer-level RoE via cross-selling with an overlaying target of risk-adjusted core profitability at the bank level. We expect the bank to clock 21% core operating profit growth in FY21-24E and a RoE of 14-17% in FY22-24E.

Outlook

We retain Buy with a TP (Dec’22) of Rs950 (2.7x Dec’23E standalone ABV + subs value of Rs196), and believe that the recent correction amid market weakness offers an opportunity to add.