Sharekhan's research report on ICICI Bank
ICICI Bank put up a strong show on all fronts- net interest income, core operating profit, earnings and advances recording robust growth with better asset quality and minimal core credit cost during the quarter. Bank reported PAT at Rs. 7,019 crore which was significantly above the street expectations of Rs. 6,315 crore, led by lower core credit costs. PAT grew by 59.4% y-o-y and 13.3% q-o-q in Q4FY22. Asset quality has continuously improved over the past seven quarters with both GNPA and NNPA ratios falling by 53 bps q-o-q and 9 bps q-o-q to 3.60% and 0.76% in Q4FY22.
Stock is currently trading at 2.7x/2.3x its FY2023E and FY2024E core ABV. We maintain a Buy rating on the stock with an unchanged price target of Rs. 970. With improving return ratios matrix, making it our preferred pick in the banking sector.
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