ICICI Bank Q2 Results Review - Strong Quarter; Credit Cost Continues To Undershoot: Motilal Oswal

Motilal Oswal Report

ICICI Bank Ltd. reported yet another quarter of strong performance, with 22% YoY growth in core profitability. However, margins contracted 25 basis points QoQ.

Credit growth was robust at 18% YoY, led by continued traction in retail, small and medium enterprise and BB segments. Deposits saw healthy growth of 19% YoY.

Asset quality continued to surprise positively as provisions came in 51% below our estimate and gross/net non-performing assett ratio improved further.

ICICI Bank maintains a total contingency buffer of Rs 131 billion (2.1% of loans), which provides comfort.

We raise our FY24/FY25 earnings per share estimates by 3%/4% and expect ICICI Bank to deliver return on asset/return on equity of 2.3%/18.3% in FY25. Maintain 'Buy' with a revised target price of Rs 1,120.

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