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ICICI Bank is the country’s second largest bank in term of profit, assets,
advances, deposits, branches. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries in the areas
of investment banking, life and non-life insurance, venture capital and assets
management.
Strong CASA growth
CASA deposits of the ICICI Bank increased by 34.5% to Rs. 98105cr at
September 30, 2010 from Rs. 72930cr at September 30, 2009 with CASA ratio
stands at 44% at September 30, 2010 from 36.9% at September 30, 2009. The
Bank’s CASA ratio has increased from 28.7% at March 31, 2009 to 41.7% at
March 31, 2010, resulting in a significantly enhanced stable low cost deposit
base.
Capital adequacy of the bank in good health
The bank’s capital adequacy at September 30, 2010 as per the reserve bank of
India’s guidelines on Basel ii norms was 20.2% and Tier-I capital adequacy was
13.8%, well above RBI’s requirement of total capital adequacy of 9% and Tier-I
capital adequacy of 6%. The bank’s capital adequacy at year ended March 31,
2010 was 19.41% well above RBI’s requirement.
VALUATION
At the current price of Rs. 1011, the stock is trading at just 19.37x and
14.91x times of our estimated FY11E & FY12E earning. We thus
recommend a “BUY” with a target price of Rs. 1230.
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
ICICI Bank is the country’s second largest bank in term of profit, assets,
advances, deposits, branches. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries in the areas
of investment banking, life and non-life insurance, venture capital and assets
management.
Strong CASA growth
CASA deposits of the ICICI Bank increased by 34.5% to Rs. 98105cr at
September 30, 2010 from Rs. 72930cr at September 30, 2009 with CASA ratio
stands at 44% at September 30, 2010 from 36.9% at September 30, 2009. The
Bank’s CASA ratio has increased from 28.7% at March 31, 2009 to 41.7% at
March 31, 2010, resulting in a significantly enhanced stable low cost deposit
base.
Capital adequacy of the bank in good health
The bank’s capital adequacy at September 30, 2010 as per the reserve bank of
India’s guidelines on Basel ii norms was 20.2% and Tier-I capital adequacy was
13.8%, well above RBI’s requirement of total capital adequacy of 9% and Tier-I
capital adequacy of 6%. The bank’s capital adequacy at year ended March 31,
2010 was 19.41% well above RBI’s requirement.
VALUATION
At the current price of Rs. 1011, the stock is trading at just 19.37x and
14.91x times of our estimated FY11E & FY12E earning. We thus
recommend a “BUY” with a target price of Rs. 1230.
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