ICICI Bank Q4 Results Review: Systematix Maintains 'Buy', Hikes Target Price On An All- Round Performance

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Systematix Report

ICICI Bank Ltd. reported Q4 FY25 PAT of Rs 126 billion (7% QoQ, 18% YoY) and was an all round performance led by higher than system credit growth, margin expansion, controlled opex increase and stable asset quality.

Other key highlights were:

1. Net advances growth was muted sequentially at 2.1% QoQ, 13.3% YoY due to weak retail growth (2% QoQ, 9% YoY). However, YoY basis, growth still remains higher than system credit growth of 12% as of 21- Mar’25.

2. Deposit growth was strong at 6% QoQ, 14% YoY on seasonality.

3. Reported net interest margin increased by 4.41% (+16 bps QoQ) mainly led by lower interest reversal on seasonally lower KCC slippages.

4. Other income increased by 2.7% QoQ, 29% YoY (Q4 FY24 was impacted due to transfer of negative balance of Rs 3.4 billion in Foreign Currency Translation Reserve related to the Bank’s Offshore Unit in Mumbai).

5. CIR declined to 37.9% (-130 bps QoQ) and opex/assets declined to 2.09% (-3 bps QoQ) mainly to controlled increase in other overheads (1% qoq, 12% YoY).

6. Gross slippage ratio declined to 1.57% versus 1.91%/1.79% in QoQ/YoY.

7. The bank delivered FY25 RoA of 2.40% vs 2.37% in FY24.

We revise our margin and growth estimates to factor in the impact of the recent policy rate cuts. We retain our Buy rating with a revised target price of Rs 1,615 (from 1,465 earlier) with a target multiple of 2.8x (vs 2.6x earlier) Mar’27 adjusted book value per share for the standalone bank factoring in Rs 190 per share contribution from subsidiaries.

We estimate the bank to deliver FY26-27 avg RoA/RoE of 2.20%/16% versus FY25 RoA/RoE of 2.37%/18%.

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