Prabhudas Lilladher's research report on ICICI BankICICI Bank (ICICIBC) reported dismal performance with sharp deterioration in asset quality led by fresh slippages of Rs65.4bn. Credit cost increased sharply to 269bp (annualized) however as the bank ploughed the stake sale gains in life insurance business into provisions, the damage to coverage ratio was limited to 422bp. Bank suggested that soft commodity prices (particularly steel) and continued weak economic environment has resulted in such high NPL accretion. On operational front NII stood inline with our estimates (13% YoY growth) while fee income maintains tepid trend line growth of 6% YoY. We fine‐tune our earnings and lower our PT to Rs300 (from Rs360) based on 1.7x Sep‐2017E ABV. We maintain BUY.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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