HDFC Securities is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 442 in its research report dated June 29, 2020.
HDFC Securities' research report on ICICI Bank
ICICIBC has realised ~Rs 31bn in 1QFY21 so far, from stake sales in ICICIGI (Rs 22.5bn) & IPRU (Rs 8.4bn) while retaining majority stakes. The move bolsters the bank’s already strong capital base (16.1%, +40bps) and allows it to make further COVID-19 related provisions, while limiting the RoAE impact. This demonstrates its ability to augment its capital base, without raising funds (media articles suggest that it is looking to raise $ 3bn). Even without said (potential) fund raise, the bank is well positioned to withstand COVID-19 related stress and capture any resurgent growth.
Outlook
ICICIBC remains our top pick amongst large private banks. Maintain BUY with a SoTP of Rs 442.
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