ICICI Bank Q4 Results Review: IDBI Capital Maintains ‘Buy’ Rating With A New Target Price Of Rs 1,615

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

ICICI Bank Ltd. reported slowdown in credit growth to 13% YoY versus 14% YoY (Q3 FY25) vs 15% YoY (Q2 FY25); while deposit growth remains stable at 14% YoY (vs ~14% YoY Q3 FY25). We expect 14.5% CAGR (FY25-27E) loan growth. Net interest margins improved post decline in last six quarters led by rise in yields. However, need to watch out for impact of rate cut on NIMs.

Asset quality improved due to lower slippages. Bank reported strong profitability growth at 18% YoY led by lower operating expenses. Pre-provision operating profit grew by 18% YoY led by higher non-interest income (up 29% YoY).

Lower credit costs led by better recoveries resulted in best return ratios in last few years; RoA at 2.49% (Q4 FY25).

We have revised estimates upwards led by better margins. We maintain ‘Buy’ rating with a new target price of Rs 1,615 (Rs 1,490), valuing parent business at Rs1,402 at 2.6X P/ABV FY27E and rest for the subsidiaries.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.