Religare's research report on ICICI BankICICIBC’s Q4 PAT tanked 76% YoY to Rs 7bn, coming in sharply below our/ cons. estimates. The bank created an asset quality watch list of Rs 527bn, which is more than double AXSB’s Rs 226bn. But since it includes both funded and non-funded, 5:25 and SME advances, the stress on books is indicated more clearly. NIMs slid 16bps QoQ due to interest reversals and excess liquidity in the overseas book. We slash FY17/FY18 earnings and revise down our Mar’17 TP to Rs 200 (vs. Rs 230 earlier). Maintain SELL.We slash our FY17/FY18 estimates by 18-20% citing margin pressure and elevated provisions, and according revise down our Mar’17 TP to Rs 200 from Rs 230 earlier. We maintain our SELL rating as we believe that any meaningful improvement in stressed asset formation is still a while away for the bank. 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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