February 10, 2017 / 13:29 IST
ICICI Bank’s domestic loan book grew at a healthy pace of 12% YoY largely driven by 17% growth in retail advances. However, domestic corporate loans reported muted growth of 4% YoY on the back of the bank’s continuous focus on reducing stress exposure. Further, international loans declined by 16% YoY mainly due to maturity of USD870mn of overseas loans against FCNR deposits. Hence, the bank’s overall loan book grew by 5% YoY.
Outlook
Moreover, the management has guided for reduction in watch-list given the expected resolution in two large accounts. Hence, we continue to maintain BUY rating on the stock with a TP of Rs 325 using sum of the part (SOTP) methodology, where we value its standalone business at Rs 252 (P/ABV of 1.7x for FY19E) and subsidiaries at Rs 73.
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