ICICI Bank :: Angel Broking Diwali Top Picks (Diwali Muharat)

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 In the last six years, ICICI Bank has delivered a strong performance in a tough
environment. It has increased its branch network from 1,388 branches in 1QFY2009
to 3,763 in 1QFY2015. Its balance sheet also strengthened, with CASA ratio
improving from 29% at the end of FY2009 to 43% in 1QFY2015, Gross NPA ratio
decreasing to 2.69% in 1QFY2015 as against 5.1% in FY2010 and Net NPA ratio
decreasing to 0.87% in 1QFY2015 as against 1.87% in FY2010.
 Branch expansion coupled with strong capital adequacy at 17.57% (Tier1 at 12.5%)
will in our view enable the bank to grow its loans and low-cost deposits at a faster
pace than the industry and increase its market share as the business environment
turns conducive.
 The stock is trading at a valuation of 1.9x FY2016E P/ABV (adjusting for subsidiaries).
WWWe maintain our Buy recommendation on the stock with a target price of e maintain our Buy recommendation on the stock with a target price of ```1,894, 1,894,1,894,
valuing the core bank at 2.5x FY2016E P/ABV and assigning a value of V and assigning a value of ```206 to 206 to206 to
its subsidiaries. its subsidiaries.