Mayuresh Joshi positive on ICICI Bank

Mayuresh Joshi of Angel Broking told CNBC-TV18, "With the response that we have seen for the initial public offering (IPO), yes expecting a positive response to come through. And there are no complaints prima facie. Look at the persistency ratios, close to 82.5 percent, the solvency ratio at 320 percent, the new business premiums have actually improved 52.5 percent on a year-on-year basis from 2015-2016 Rs 412 crore. The net new business margins have improved from 5.7 percent to 8 percent. So, largely, the business improvement has been all-round for ICICI Prudential as an entity.""If you look at the core business verticals, Unit Linked Insurance Plans (ULIP) still account for the lion’s share. And if you look at the embedded value at the current juncture, you are probably looking at a price to book at 3.4 times at the higher end of the range. So clearly, expecting a positive listing to come through, but what happens with numbers going ahead and their plans to probably go for non-ULIP products will be key for the success going ahead.""What this probably does to ICICI Bank, with the earlier dilution that had happened and the current enterprise value that you are getting, the value per share specifically from ICICI Prudential on ICICI Bank’s balance sheet probably goes up a tad bit. But largely, the performance for ICICI Bank will be how their advances grow over FY18 and FY19.""For a large part of FY17, our own take is a 14-15 percent growth though retail probably is growing at a much faster clip. But because of asset quality pressures being recognised on the balance sheet in FY17, credit costs staying extremely high for the better part of the next three quarters, our own sense is that the news will still get constrained though you will see sequential improvement happening on a year-on-year basis in FY18.""So, I am maintaining a positive view on ICICI Bank as an entity, but ICICI Prudential’s listing, in my opinion will be positive. The numbers here on will be very interesting to gauge what kind of rerating the markets give to the stock. I will not buy it at the current juncture, as I said, because in our opinion again, at 3.4 times, it is on the higher side. So, we will wait for declines," he said.