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ICICI BANK
(Rating: Buy, CMP: Rs. 859; Target: Rs. 1050; Upside: 22%; Investment Period: 6-12 months)
Investment Rationale
• ICICI Bank reported a steady set of numbers for Q1FY2012 with an improvement in core income, margins and
asset quality. Given the weak macro environment, the bank has given a loan growth guidance of 18%, diversified
across corporate and retail segments. Continuous improving asset quality is vulnerable to any negative
development in the macro environment
• Since the 2008 crisis, ICICI Bank has changed itself with less risky asset and liability profile. The standalone loan
book now comprises lower proportion of unsecured loans. Average CASA ratio at 40% levels is one of the largest
amongst banks.
• Low NPLs, declining slippages and healthy provision coverage ratio at ~76% strengthen the balance sheet of the
bank. Capital adequacy ratios are healthy at 19.6% (Tier-1 ratio at 13.4%).
At the CMP of Rs 859, the stock is trading at a P/E of 17.31 on TTM basis. EPS on TTM basis is Rs 47.37.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
ICICI BANK
(Rating: Buy, CMP: Rs. 859; Target: Rs. 1050; Upside: 22%; Investment Period: 6-12 months)
Investment Rationale
• ICICI Bank reported a steady set of numbers for Q1FY2012 with an improvement in core income, margins and
asset quality. Given the weak macro environment, the bank has given a loan growth guidance of 18%, diversified
across corporate and retail segments. Continuous improving asset quality is vulnerable to any negative
development in the macro environment
• Since the 2008 crisis, ICICI Bank has changed itself with less risky asset and liability profile. The standalone loan
book now comprises lower proportion of unsecured loans. Average CASA ratio at 40% levels is one of the largest
amongst banks.
• Low NPLs, declining slippages and healthy provision coverage ratio at ~76% strengthen the balance sheet of the
bank. Capital adequacy ratios are healthy at 19.6% (Tier-1 ratio at 13.4%).
At the CMP of Rs 859, the stock is trading at a P/E of 17.31 on TTM basis. EPS on TTM basis is Rs 47.37.
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