BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
ICICI Bank Ltd. reported healthy quarter with net interest income growth at 38% YoY, robust net interest margin at 4.8% (-12 basis points QoQ) and high treasury gains aiding pre-provision operating profit growth of 37% YoY. Full impact of Feb repo hike limited NIM moderation versus peers.
Healthy loan growth at 4% QoQ was led by unsecured retail (8%) and small and medium enterprise (5%).
Deposits growth strengthened to 5% QoQ. Slippages at 2.1% includes impact of seasonally higher agri slippages.
Outlook and View
ICICI Bank stands out for its superior liability mix, strong digital capabilities, and improved core PPoP metrics.
Maintain 'Buy' with a SOTP based unrevised target price of Rs 1170, valuing the standalone bank at 2.9 times March-25E book (3.3 times including subsidiaries).
The bank trades at 2.8 times FY25E price-to-book-value against return on asset/return on equity of 2%/16%.
Risks to our view:
Lower than expected growth metrics, higher than expected opex, and pressure on margins.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.