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Dolat Capital Report
ICICI Bank Ltd. reported steady quarter with net interest income growth at 24% YoY, healthy net interest margin at 4.5% (-25 bps QoQ) and low credit costs aiding profit after tax growth of 35% YoY. Marginal net slippages aided credit costs of 25 basis points for the quarter.
ICICI Bank's loan growth was robust at 5% QoQ 18% YoY, with strong sequential growth across small and medium enterprise including bulge bracket (9%), unsecured retail (9%), and overseas book (13%). Deposits growth was healthy at 5% QoQ.
Tweaking earnings and rolling over to September-25E, maintain 'Buy' with a SOTP based target price of Rs 1200 (3.1 times including subs) against return on asset/return on equity of 2%/16% for FY24E. We value the standalone bank at 2.8 times price-o-book value.
Risks to our view:
Lower than expected growth metrics, higher than expected opex, and pressure on margins
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