Please refer to important disclosures at the end of this report
ICICI Bank is among the largest private-sector banks in India with an asset
base of `7.6 lakh cr as on December 31, 2017.ICICI Bank had a sizeable
networth of Rs 97514cr and a healthy Tier-I capital adequacy ratio (CAR) of
13.3% and overall CAR of 16.7% under Basel III as on December 31, 2017,
making it one of the well capitalised banks in India. CASA deposits, as a
proportion of total deposits, remain healthy and had grown to 49.9% as on
December 31, 2017. Further, total retail deposits constituted 78% of total
deposits as on same date. Asset quality has shown signs of improvement
over the last 2 quarters with slippages declining for the 8th consecutive
quarter (slippage at 4.4% vs 4.7% in Q1FY18). Further the management has
guided for FY18 slippages to be significantly lower than that of FY17. Further
the management’s strategy to lend only to better rated corporate and retail
focus will help the bank improve on its asset quality gradually over the years
while advances are expected to resume their growth trajectory along with
stable NIMs. Bank’s subsidiaries (especially the insurance ones) are expected
to create significant value in the long term as well. Bank continues to
maintain focused approach on growth. As a result, domestic portfolio has
grown by 12.8% yoy with retail growing 18.6%. Within the retail portfolio,
growth has come across all the segments. Gross NPAs have improved to
7.87% during the quarter, with slippages coming down to `4674cr (lowest in
last 8 quarters.With increased provisioning cover, Net NPAs now stand at
4.43%, up 122 bps yoy and down 43 bps qoq. The continued decline in net
NPAs over last two quarters indicates that the management is following a
prudent provisioning policy and using exceptional/one-time gains to
strengthen the balance sheet by provisioning for stress upfront. Hence BUY.
CMP `362
Reuters Code
BSE Sensex
Face Value (`)
Market Cap (` cr)
52 Week High / Low
Avg. Daily Volume
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
ICICI Bank Ltd
Others |Bank
Jan 23, 2018
ICICI Bank|Bank
June 5, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement ICICI Bank
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)