2QFY2016 Result Update | Banking

November 3, 2015

ICICI Bank

BUY

CMP

`279

Performance Highlights

Target Price

`348

Particulars (` cr)

2QFY16 1QFY16

% chg (qoq) 2QFY15

% chg (yoy)

Investment Period

12 Months

NII

5,251

5,115

2.7

4,657

12.8

Pre-prov. profit

5,158

5,038

2.4

4,698

9.8

Stock Info

PAT

3,030

2,976

1.8

2,709

11.9

Sector

Banking

Source: Company, Angel Research

Market Cap (` cr)

1,62,215

ICICI Bank reported a decent set of number for 2QFY2016, with PAT growth of

Beta

1.5

11.9% yoy to `3,030cr (in-line with our expectation).

52 Week High / Low

393/248

Avg. Daily Volume

1,34,75,982

Healthy growth in retail advances

Face Value (`)

During 2QFY2016, the bank’s advances grew by 13.3% yoy (2.5% qoq), aided by

BSE Sensex

26,559

healthy retail loan book growth of 25.2% yoy. The main drivers leading to the

Nifty

8,051

growth in the retail loan book were Personal loans and Home loans, which grew

Reuters Code

ICBK.NS

Bloomberg Code

ICICIBC@IN

by 56% and 25% yoy respectively. Retail contribution to total loans increased to

44.0% as compared to 39.8% in the corresponding quarter of the previous year.

The corporate book grew 7.2% yoy. Advances were made mainly towards working

Shareholding Pattern (%)

capital requirements while some of the incremental lending was done to PSU

Promoters

companies and other better rated companies.

MF / Banks / Indian Fls

23.7

Deposits growth was modest at 9.2% yoy, while CASA deposits saw a moderate

FII / NRIs / OCBs

38.2

growth of 12.9% yoy, resulting in improvement in CASA ratio by 144bp yoy to

45.1%. The Reported NIM fell by 2bp qoq to 3.52%, with domestic NIM at 3.84%

Indian Public / Others

38.0

as compared to 3.90% in 1QFY2016. The non-interest income (excluding treasury)

for the bank grew 7.1% yoy.

On the asset quality front, the bank witnessed slippages during the quarter to the

Abs. (%)

3m 1yr

3yr

tune of `2,242cr (annualized slippage ratio at 2.3%) as compared to `1,672cr in

Sensex

(5.5)

(4.7)

41.6

the sequential previous quarter (annualized slippage ratio at 1.73%), with slippage

ICICI Bank

(7.7)

(14.1)

29.4

from restructuring at `931cr. The Gross NPA ratio increased 9bp sequentially to

3-year price chart

3.77%, whereas the Net NPA rose 7bp qoq to1.65%. The bank refinanced

450

~`2,000cr under the 5:25 scheme. The Management has guided for lower

400

addition to NPA and restructuring in FY2016 as against FY2015.

350

300

250

Outlook and valuation: At the current market price, the bank’s core banking

200

business (after adjusting `58/share towards value of subsidiaries) is trading at 1.5x

150

FY2017E ABV. The valuation discount in our view vis-à-vis other private banks

100

adequately factors in the relatively higher stressed assets in the bank’s books. We

recommend a Buy rating on the stock, with a target price of `348.

Key financials (Standalone)

Source: Company, Angel Research

Y/E March (` cr)

FY2014

FY2015

FY2016E

FY2017E

NII

16,476

19,040

21,824

25,222

% chg

18.8

15.6

14.6

15.6

Net profit

9,810

11,045

12,479

14,680

% chg

17.8

12.6

13.0

17.6

Vaibhav Agrawal

NIM (%)

3.2

3.3

3.4

022 - 3935 7800 Ext: 6808

EPS (`)

17.0

18.9

21.4

25.2

[email protected]

P/E (x)

16.3

14.6

13.0

11.0

P/ABV (x)

2.3

2.4

2.2

1.8

Chintan Shah

RoA (%)

1.6

022 - 4000 3600 Ext: 6828

RoE (%)

14.9

14.8

14.7

15.2

[email protected]

Source: Company, Angel Research; Note: CMP as of November 2, 2015

Please refer to important disclosures at the end of this report

ICICI Bank | 2QFY2016 Result Update

Exhibit 1: 2QFY2016 performance (Standalone)

Particulars (` cr)

2QFY16

1QFY16

% chg (qoq)

2QFY15

% chg (yoy)

FY2015

FY2014

% chg

Interest earned

13,099

12,813

2.2

12,151

7.8

49,091

44,178

11.1

- on Advances / Bills

9,665

9,375

3.1

8,874

8.9

35,631

31,428

13.4

- on investments

2,661

2,659

0.1

2,972

(10.5)

11,945

11,557

3.4

- on balance with RBI & others

(0.2)

(41.5)

195

200

(2.4)

- on others

741

747

(0.7)

251

195.9

1,320

993

32.9

Interest Expended

7,847

7,697

1.9

7,494

4.7

30,052

27,703

8.5

Net Interest Income

5,251

5,115

2.7

4,657

12.8

19,040

16,476

15.6

Other income

3,007

2,990

0.6

2,738

9.8

12,176

10,428

16.8

Other income excl. treasury

2,785

2,783

0.1

2,601

7.1

10,482

9,412

11.4

- Fee income

2,235

2,110

5.9

2,103

6.3

8,286

7,758

6.8

- Treasury income

222

207

7.2

137

62.0

1,694

1,016

66.7

- Others

550

673

(18.3)

498

10.4

2,196

1,654

32.8

Operating income

8,259

8,105

1.9

7,395

11.7

31,216

26,903

16.0

Operating expenses

3,100

3,067

1.1

2,697

15.0

11,496

10,309

11.5

- Employee expenses

1,213

1,267

(4.3)

1,086

11.6

4,750

4,220

12.6

- Other Opex

1,888

1,800

4.9

1,611

17.2

6,746

6,089

10.8

Pre-provision Profit

5,158

5,038

2.4

4,698

9.8

19,720

16,595

18.8

Provisions & Contingencies

942

955

(1.4)

849

10.9

3,900

2,626

48.5

PBT

4,216

4,082

3.3

3,848

9.6

15,820

13,968

13.3

Provision for Tax

1,186

1,106

7.2

1,139

4.1

4,645

4,158

11.7

PAT

3,030

2,976

1.8

2,709

11.9

11,175

9,810

13.9

Effective Tax Rate (%)

28.1

27.1

103bp

29.6

(147)bp

29.4

29.8

(41)bp

Source: Company, Angel Research

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Exhibit 2: 2QFY2016 performance analysis (Standalone)

Particulars

2QFY16 1QFY16

% chg (qoq) 2QFY15

% chg (yoy)

Balance sheet

Advances (` cr)

4,09,693

3,99,738

2.5

3,61,757

13.3

Deposits (` cr)

3,84,618

3,67,877

4.6

3,52,055

9.2

Credit-to-Deposit Ratio (%)

106.5

108.7

(214)bp

102.8

376bp

Current deposits (` cr)

49,504

45,549

8.7

48,118

2.9

Saving deposits (` cr)

1,23,985

1,16,765

6.2

1,05,607

17.4

CASA deposits (` cr)

1,73,489

1,62,314

6.9

1,53,725

12.9

CASA ratio (%)

45.1

44.1

99bp

43.7

144bp

CAR (%)

16.2

16.4

(22)bp

17.4

(126)bp

Tier 1 CAR (%)

12.1

12.6

(55)bp

12.8

(66)bp

Profitability Ratios (%)

Reported NIM

3.52

3.54

(2)bp

3.42

10bp

Cost-to-income ratio

37.5

37.8

(30)bp

36.5

107bp

Asset quality

Gross NPAs (` cr)

15,858

15,138

4.8

11,547

37.3

Gross NPAs (%)

3.8

3.7

9bp

3.1

65bp

Net NPAs (` cr)

6,828

6,333

7.8

3,942

73.2

Net NPAs (%)

1.7

1.6

7bp

1.1

56bp

Provision Coverage Ratio (%)

57.4

58.2

(80)bp

65.9

(850)bp

Slippage ratio (%)

2.3

2.0

34bp

2.0

34bps

Provision exps. to avg. adv (%)

0.6

(1)bp

0.6

1bp

Source: Company, Angel Research

Retail drives healthy loan growth

During 2QFY2016, the bank’s advances grew by 13.3% yoy (2.5% qoq), aided by

healthy retail loan book growth of 25.2% yoy. The main drivers leading to the

growth in the retail loan book were Personal loans and Home loans which grew by

56% and 25% yoy, respectively. Retail contribution to total loans increased to

44.0% as compared to 39.8% in the corresponding quarter of the previous year.

The corporate book grew 7.2% yoy, where advances were mainly towards working

capital requirements while some of the incremental lending was done to PSU

companies and other better rated companies.

Deposits growth was modest at 9.2% yoy, while CASA deposits saw a moderate

growth of 12.9% yoy, resulting in improvement in CASA ratio by 144bp yoy to

45.1% as of 2QFY2016. The bank is well placed in terms of capital required to

support its growth. Given its current capital position, the bank is of the view that

the bank does not need to raise further capital till March 2018.

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Exhibit 3: Strong Retail lending supports Loan Growth

Particulars (` cr)

2QFY16

1QFY16

% chg (qoq) 2QFY15

% chg (yoy) % total

Domestic Corporate

1,16,353

1,14,725

1.4

1,08,527

7.2

28.4

Overseas branches

95,458

96,737

(1.3)

92,972

2.7

23.3

SME

17,617

17,189

2.5

16,279

8.2

4.3

Retail Total

1,80,265

1,71,088

5.4

1,43,979

25.2

44.0

-Home

99,326

93,927

5.7

79,189

25.4

55.1

-Vehicle loans

32,267

30,625

5.4

27,788

16.1

17.9

-Others

25,778

25,663

0.4

19,725

30.7

14.3

-Banking business

10,095

9,239

9.3

8,351

20.9

5.6

-Credit cards

4,507

4,106

9.8

3,599

25.2

2.5

-Personal loans

8,292

7,528

10.2

5,327

55.7

4.6

Total advances

4,09,693

3,99,738

2.5

3,61,757

13.3

100.0

Source: Company, Angel Research

Exhibit 4: Retail segment supports Advances growth

Exhibit 5: CASA ratio rises, CASA deposits up 12.9% yoy

Adv. yoy growth

Dep. yoy growth

CDR (%, RHS)

CASA ratio (%)

yoy Growth

16.0

108.7

110.0

45.0

20.0

107.2

14.0

106.5

15.5

105.6

14.8

12.0

14.1

40.0

12.9

15.0

12.4

105.0

10.0

102.8

8.0

35.0

10.0

6.0

100.0

4.0

30.0

5.0

2.0

95.0

25.0

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

Source: Company, Angel Research

NIM decreases qoq

The Reported NIM fell by 2bp qoq to 3.52%, with domestic NIM at 3.84% as

compared to 3.90% in 1QFY2016. The non-interest income (excluding treasury)

for the bank grew 7.1% yoy.

Decrease in domestic NIM was mainly on account of reduction in base rate during

the quarter by 5bp which was cushioned to an extent by increase in International

NIM to 2% in 1QFY2016 compared to 1.88% in 1QFY2016 and also decline in

the cost of funds by 10bp qoq to 5.93%.

The bank has further reduced its base rate by 35 basis points effective October 5,

2015 to 9.35%. Hence the net interest margins in the third quarter of 2016 could

decline; but the Management continues to target to maintain overall net interest

margin for FY2016 at a similar level compared to FY2015 in spite of declining

interest rates.

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Exhibit 6: NIM dips marginally by 2bp on qoq basis

Exhibit 7: NII growth trends

NIM (Reported, %)

NII (` cr)

YoY growth (%, RHS)

3.57

5,600

18.0

3.54

3.52

3.46

5,300

3.42

16.0

3.50

5,000

16.6

14.0

4,700

15.2

4,400

13.9

12.0

13.1

12.8

3.00

4,100

10.0

3,800

8.0

3,500

3,200

6.0

2.50

2,900

4.0

2,600

2.0

2,300

2.00

2,000

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

Source: Company, Angel Research

Soft growth in fee income

The non-interest income (excluding treasury) for the bank grew 7.1% yoy. Treasury

income grew by 62.0% yoy, leading to a 9.8% yoy growth in overall other income.

While retail fees continued to grow at a healthy rate, the growth in overall fee

remains impacted by subdued corporate activity and consequent decline in

corporate fee income. Retail fees for the bank constituted about 65% of the overall

fees for the quarter.

Exhibit 8: ‘Treasury Income’ aides non-interest income performance

Particulars (` cr)

2QFY16 1QFY16

% chg (qoq) 2QFY15

% chg (yoy)

Fee income

2,235

2,110

5.9

2,103

6.3

Treasury

222

207

7.2

137

62.0

Others

550

673

(18.3)

498

10.4

Non-interest income

3,007

2,990

0.6

2,738

9.8

Non-int. income excl. treasury

2,785

2,783

0.1

2,601

7.1

Source: Company, Angel Research

Exhibit 9: Fee income growth at 6.3% yoy

Exhibit 10: Healthy share of fee income

Fee Income (` cr)

yoy growth (%, RHS)

Fee income to average assets (%)

2,250

12.0

1.5

1.4

8.3

9.0

1.4

2,200

1.4

9.0

1.4

1.3

6.3

1.3

5.5

2,150

5.7

1.3

6.0

2,100

1.2

3.0

2,050

1.1

2,000

1.0

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

Source: Company, Angel Research

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Slippages rise qoq, but Management outlook unchanged on

asset quality

On the asset quality front, the bank witnessed slippages during the quarter to the

tune of `2,242cr (annualized slippage ratio at 2.3%) as compared to `1,672cr in

sequential previous quarter (annualized slippage ratio at 1.73%), with slippage

from restructuring at `931cr. The Gross NPA ratio rose 9bp sequentially to 3.77%,

whereas the Net NPA ratio rose 7bp qoq to1.65%. The bank refinanced

~`2,000cr under the 5:25 scheme. The Management has guided for lower

addition to NPA and restructuring in FY2016 as against FY2015.

Exhibit 11: O/s Restructured book declines qoq

Exhibit 12: Asset quality during the quarter

13,000

Gross NPAs (%)

Net NPAs (%)

Coverage ratio (%, RHS)

(` cr)

12,604

4.00

70.0

65.9

12,052

63.5

11,868

65.0

3.00

58.6

58.2

57.4

60.0

11,020

11,017

11,000

2.00

55.0

50.0

1.00

45.0

9,000

40.0

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

Source: Company, Angel Research

Overview of performance of subsidiaries

 ICICI Bank’s consolidated net profit for 2QFY2016 rose by 11.5% yoy to

`3,419cr. The consolidated reported RoE came in at 15.3% for 2QFY2016 as

compared to 15.1% in 2QFY2015.

 ICICI Bank’s overseas subsidiary, ICICI Bank UK witnessed an earnings

decline of around 88.2% yoy for 2QFY2016. The lower profits in the second

quarter of fiscal 2016 were on account of higher provisions on existing

impaired loans while ICICI Bank Canada’s earnings dipped by 28.3% yoy.

 ICICI Prudential AMC reported a PAT of `84cr for 2QFY2016 as compared to

a PAT of `62cr for 2QFY2015.

 ICICI Lombard General Insurance reported a PAT of `143cr for 2QFY2016,

as against `158cr in 2QFY2015 whereas ICICI Home Finance reported a PAT

of `48.9cr for 2QFY2016 as against a PAT of `48.1cr in 2QFY2015. Earnings

for ICICI Securities came in at `60cr for 2QFY2016.

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Exhibit 13: Performance of subsidiaries

Subsidiary

Parameter

2QFY16

2QFY15

% chg

FY2015

FY2014

% chg

ICICI Bank UK

PAT (USD mn)

0.6

5.1

(88.2)

18.3

25.2

(27.4)

ICICI Bank Canada

PAT (CAD mn)

6.6

9.2

(28.3)

33.7

48.3

(30.2)

ICICI Home Finance

PAT (` cr)

1.6

198.0

223.0

(11.2)

ICICI Prudential Life Insurance

APE (` cr)

1,325

1,197

10.7

4,744.0

3,444.0

37.7

NBP (` cr)

183

130

40.8

532.0

427.0

24.6

NBP margin (%)

26.6

AuM (` cr)

99,127

90,726

9.3

1,00,183

80,597

24.3

ICICI Lombard General Insurance

Gross Premium (` cr)

1,999

1,638

22.0

6,914

7,134

(3.1)

PAT (` cr)

143

158

(9.5)

536

511

4.9

ICICI Securities

PAT (` cr)

(11.8)

294

223.1

ICICI Securities PD

PAT (` cr)

75.5

217

132

64.4

ICICI Venture

PAT (` cr)

(3)

(1)

200.0

(97.0)

ICICI Prudential AMC

PAT (` cr)

35.5

247

183

35.0

Source: Company, Angel Research

Outlook and Valuation

At the current market price, the bank’s core banking business (after adjusting

`58/share towards value of subsidiaries) is trading at 1.5x FY2017E ABV. The

valuation discount, in our view, vis-à-vis other private banks adequately factors in

the relatively higher stressed assets in the bank’s books in the near term. We

recommend a Buy rating on the stock, with a target price of `348.

Exhibit 14: SOTP valuation summary

Particulars

Target multiple

Value/share (`)

ICICI Bank

2.0x FY2017E ABV

289

Life Insurance

25.0x FY2017E NBP

General Insurance

32x FY2014 PAT

Others (Home Fin, AMC, VC, Securities

PD and Overseas subsidiaries)

SOTP value

348

Source: Angel Research

Exhibit 15:

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), ^#Without adjusting for SASF

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Exhibit 16: Recommendation summary

CMP

Tgt. Price

Upside

FY2017E

FY15-17E

FY2017E

Company

Reco.

(`)

(%)

P/ABV (x)

Tgt. P/ABV (x)

P/E (x)

EPS CAGR (%)

RoA (%)

RoE (%)

HDFCBk

Buy

1,083

1,262

16.5

3.3

3.8

17.7

22.4

1.9

19.7

ICICIBk*

Buy

279

348

24.5

1.9

2.0

11.1

15.3

1.6

15.2

YesBk

Buy

770

914

18.6

2.0

2.4

11.1

20.2

1.6

19.6

AxisBk

Buy

478

630

31.6

1.9

2.6

11.0

18.4

1.8

18.9

SBI*

Buy

237

295

24.4

1.1

1.2

9.7

17.8

0.7

12.8

FedBk

Neutral

1.0

8.8

3.1

1.0

11.9

SIB

Neutral

0.7

0.8

6.2

21.6

0.7

11.6

BOB

Neutral

162

0.8

6.5

27.1

0.7

12.1

PNB

Neutral

130

0.6

4.8

28.5

0.7

12.0

BOI

Neutral

133

0.3

1.0

4.0

14.0

0.3

7.6

IndBk

Neutral

133

0.4

4.4

19.4

0.7

9.3

Vijaya Bank

Neutral

0.5

5.4

14.1

0.4

8.8

OBC

Neutral

146

0.3

0.5

3.2

65.5

0.5

9.4

Allahabad Bank Neutral

0.3

3.0

53.5

0.6

10.9

UnionBk

Neutral

160

0.5

0.4

4.1

18.1

0.6

11.4

CanBk

Neutral

278

0.4

0.3

4.0

9.8

0.5

10.7

AllBk

Neutral

0.3

0.4

3.0

53.5

0.6

10.9

IDBI#

Neutral

0.6

6.0

61.6

0.6

9.3

Source: Company, Angel Research

Company Background

ICICI Bank is India's largest private sector bank, with more than 5% market share

in credit. The bank has a pan-India extensive network of 4,054 branches and

around 12,964 ATMs. The bank has a large overseas presence (overseas loans

comprise 23.3% of total loans). The bank also has market-leading subsidiaries in

life insurance, general insurance and asset management segments.

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Income statement (Standalone)

Y/E March (` cr)

FY12

FY13

FY14

FY15

FY16E

FY17E

Net Interest Income

10,734

13,866

16,476

19,040

21,824

25,222

- YoY Growth (%)

19.0

29.2

18.8

15.6

14.6

15.6

Other Income

7,503

8,346

10,428

12,064

13,344

15,295

- YoY Growth (%)

12.9

11.2

24.9

15.7

10.6

14.6

Operating Income

18,237

22,212

26,903

31,104

35,168

40,517

- YoY Growth (%)

16.4

21.8

21.1

15.6

13.1

15.2

Operating Expenses

7,850

9,013

10,309

11,496

12,933

14,988

- YoY Growth (%)

18.6

14.8

14.4

11.5

12.5

15.9

Pre - Provision Profit

10,386

13,199

16,595

19,608

22,235

25,529

- YoY Growth (%)

14.8

27.1

25.7

18.2

13.4

14.8

Prov. & Cont.

1,589

1,810

2,631

3,927

4,531

4,724

- YoY Growth (%)

(30.6)

13.9

45.4

49.2

15.4

4.2

Profit Before Tax

8,797

11,390

13,963

15,681

17,704

20,805

- YoY Growth (%)

30.2

29.5

22.6

12.3

12.9

17.5

Prov. for Taxation

2,332

3,064

4,153

4,636

5,225

6,125

- as a % of PBT

26.5

26.9

29.7

29.6

29.5

29.4

PAT

6,465

8,325

9,810

11,045

12,479

14,680

- YoY Growth (%)

25.5

28.8

17.8

12.6

13.0

17.6

Balance sheet (Standalone)

Y/E March (` cr)

FY12

FY13

FY14

FY15

FY16E

FY17E

Share Capital

1,503

1,504

1,505

1,517

- Equity

1,153

1,154

1,155

1,167

- Preference

350

Reserve & Surplus

59,252

65,552

72,052

79,107

87,837

98,134

Deposits

2,55,500

2,92,614

3,31,914

3,61,563

4,19,413

4,94,907

- Growth (%)

13.3

14.5

13.4

8.9

16.0

18.0

Borrowings

1,02,200

1,05,329

1,14,224

1,31,467

1,45,170

1,62,894

Tier 2 Capital

37,615

39,662

40,185

40,600.0

39,585

38,595

Other Liab. & Prov.

17,577

21,307

34,762

31,875

35,926

41,302

Total Liabilities

4,73,647

5,25,968

5,94,642

6,46,129

7,29,448

8,37,349

Cash Balances

20,461

19,053

21,822

25,653

20,971

24,745

Bank Balances

15,768

22,365

19,708

16,652

21,508

24,745

Investments

1,59,560

1,71,394

1,77,022

1,86,583

2,03,977

2,19,093

Advances

2,53,728

2,90,249

3,38,703

3,87,522

4,49,526

5,30,440

- Growth (%)

17.3

14.4

16.7

14.4

16.0

18.0

Fixed Assets

4,615

4,647

4,678

4,723

5,183

5,784

Other Assets

19,515

18,261

32,709

24,997

28,284

32,541

Total Assets

4,73,647

5,25,968

5,94,642

6,46,129

7,29,448

8,37,349

- Growth (%)

17.1

11.4

13.4

8.8

13.1

15.1

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Ratio analysis (Standalone)

Y/E March

FY12

FY13

FY14

FY15

FY16E

FY17E

Profitability ratios (%)

NIMs

2.7

3.0

3.2

3.3

3.4

Cost to Income Ratio

43.0

40.6

38.3

37.0

36.8

37.0

RoA

1.3

1.5

1.6

RoE

12.8

14.7

14.9

14.8

14.7

15.2

B/S ratios (%)

CASA Ratio

43.5

41.9

42.9

45.5

45.9

46.2

Credit/Deposit Ratio

99.3

99.2

102.0

107.2

CAR

18.5

18.7

17.7

17.6

16.4

15.1

- Tier I

12.7

12.8

12.6

12.2

11.6

Asset Quality (%)

Gross NPAs

3.6

3.2

3.0

3.8

4.7

4.8

Net NPAs

0.7

0.8

1.0

1.6

1.9

1.7

Slippages

1.3

1.4

1.5

2.3

2.5

1.9

Loan Loss Prov. /Avg. Assets

0.2

0.3

0.4

0.5

0.6

0.5

Provision Coverage

80.4

76.8

68.6

62.5

67.5

Per Share Data (`)

EPS

11.2

14.4

17.0

18.9

21.4

25.2

ABVPS (75% cover.)

104.8

115.6

120.9

116.7

124.9

149.8

DPS

3.3

4.0

4.5

6.3

5.9

6.9

Valuation Ratios

PER (x)

24.7

19.2

16.3

14.6

13.0

11.0

P/ABVPS (x)

2.6

2.4

2.3

2.4

2.2

1.8

Dividend Yield

1.2

1.4

1.6

2.3

2.1

2.5

DuPont Analysis

NII

2.5

2.8

3.0

3.1

3.2

3.3

(-) Prov. Exp.

0.4

0.5

0.6

0.7

0.6

Adj. NII

2.1

2.5

2.6

2.7

Treasury

(0.0)

0.1

0.2

Int. Sens. Inc.

2.1

2.6

2.7

2.8

2.9

Other Inc.

1.6

1.4

1.5

Op. Inc.

3.7

4.0

4.2

4.3

4.4

Opex

1.8

1.9

PBT

1.9

2.2

2.3

2.4

Taxes

0.5

0.6

0.8

RoA

1.3

1.5

1.6

Leverage

9.6

9.5

9.4

RoE

12.8

14.7

14.9

14.8

14.7

15.2

November 3, 2015

ICICI Bank | 2QFY2016 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,

Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with

CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is

a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number

INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing

/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial

ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /

managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst

has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity

of the company covered by Analyst.

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should

make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the

companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine

the merits and risks of such an investment.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable

sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this

document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way

responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot

testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be

regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the

latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may

have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

ICICI Bank

1. Analyst ownership of the stock

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

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)

November 3, 2015