Motilal Oswal's research report on ICICI Bank
We attended ICICIBC analyst day, where the management demonstrated its digital capabilities and how the bank is building various platforms and solutions to provide an end-to-end digital journey with a seamless and improved customer experience. The bank follows a 360-degree approach with Fair to Bank, Fair to Customer becoming the core mantra for employees at all levels. The key focus continues to be on growing the core PPoP in a risk-calibrated manner with Return of Capital being the core philosophy vs Return on Capital. ICICIBC appears to be several notches above its peers, when it comes to business transformation, led by tech initiatives and these digital capabilities will enable the bank to deliver superior growth over years to come. We expect ICICIBC to register a loan CAGR of 20% over FY22-24E and estimate FY24E RoA/RoE of 2.1%/17.2%.
Outlook
We reiterate our Buy rating with a SoTP-based TP of INR1,150 (3.1x FY24E ABV). ICICIBC remains our top pick in the sector and we believe that besides the steady investment return, owning ICICI Bank stock also brings a sense of pride in every investor’s portfolio.
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