ICICI Bank- Concerns on asset quality overdone ACCUMULATE ::Emkay

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ICICI Bank

Concerns on asset quality overdone

ACCUMULATE

CMP: Rs897                                        Target Price: Rs1,200

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n     We met the management of ICICI Bank to get their views on interest rates, margins, asset quality, and overseas exposure

n     The bank has maintained its NIM’s guidance at 2.6% for FY12, benefiting from continued asset repricing and change in overseas loan portfolio in favour of ECBs

n     Slippage rate to remain stable at the current levels of 1.2%. Bank’s retail unsecured/SME/ infra  exposure at just 2.5%/5%/10% provide comfort

n     Valuations at 1.8x/1.6x FY12E/FY13E standalone ABV looks not unreasonable with improving operating matrix. Maintain ACCUMULATE rating with TP of Rs1200