ICICI Bank - Improvement in performance continues : Target Price: Rs 1,250: Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

ICICI Bank

Improvement in performance continues

ACCUMULATE

CMP: Rs 1,118                                        Target Price: Rs 1,250

---

n     ICICI Bank’s reported net profit of Rs14.5bn inline with expectation, however NII at Rs25.1bn was slightly ahead of expectation led by better than expected NIMs

n     The net addition to ICICI Bank’s NPAs was almost zero during the quarter. The provision cover also shown improvement of 409bps qoq to 76%

n     Expect core RoEs of 13.7% in FY13E with  the revenue augmentation (with B/S growth) alongwith improvement in credit costs and stable cost/income ratio of 42%

n     Valuations at 2.1x/1.9x FY12E/FY13E standalone ABV not unreasonable with improving operating matrix. Upgrade to ACCUMULATE rating with TP of Rs1250