ICICI Bank Growth years ahead ; Target Price: Rs 1,200 :: Emkay

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ICICI Bank

Growth years ahead

HOLD

CMP: Rs 1,099                                       Target Price: Rs 1,200

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n     ICICI Bank eyeing a growth of 20% in advances over next couple of years. The growth to be driven by both, corporate and retail (secured) loans

n     Better utilisation of branches to drive CASA. Opened 300 new branches and acquired 460 BOR branches in FY11 which have low utilisation. Confident of 40%+ CASA ratio

n     Operating costs likely to move up as bank moves on growth path. Opex to grow at 20% in FY12E. However, provision costs to be much lower than FY11

n     Valuations at 2.3x FY11E/2.1x standalone FY11E/FY12E ABV not unreasonable. Maintain HOLD rating with TP of Rs1200