Motilal Oswal's research report on ICICI Bank
ICICI Bank (ICICIBC) reported another strong quarter with in-line earnings (RoA of 2.2%) despite making contingent provisions of INR15b and INR11.96b toward NPAs due to strict provisioning norms. Core PPoP grew 32% YoY, while NIMs expanded by 34bp QoQ to 4.65%. The asset quality performance was exemplary as the GNPA/NNPA ratios and PCR improved further. The bank now has a total contingency buffer of INR115b. Business growth was strong and broad-based across Retail and Corporate segments. The bank continued to invest in tech and digital initiatives to further boost growth momentum. With a floating-rate book of 70%, we think the bank is well placed to ride the rising interest rate environment. We estimate ICICIBC to deliver RoA/RoE of 2.2%/17.0% in FY25. Maintain Buy.
Outlook
We estimate ICICBC to deliver RoA/RoE of 2.2%/17.0% in FY25. Reiterate Buy with our SoTP-based TP of INR1,150 (2.8x Sep’24E ABV).