CLSA has a buy call on ICICI Bank with a target price of Rs 1100. The current market price of ICICI Bank Ltd. is Rs 716.30. The time period given by analyst is one year when ICICI Bank Ltd. The price can reach a defined target.

ICICI Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 500941.78 Crore).

Financials

For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 39484.49 Crore, up 1.63 % from last quarter’s Total Income of Rs 38852.60 Crore and up .41 % from last year same quarter Total Income of Rs 39321.42 Crore. The bank reported net profit after tax of Rs 7049.36 Crore in the latest quarter.

Investment Rationale

Management focus shifting towards building infra for New-to-Bank customers. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help the bank achieve ROAE/ROAA expansion over FY22-23E. Bank has successfully improved the granularity and quality of its earning. The bank remains one of the top picks in the sector for CLSA. ICICI Bank is ahead of its peers in its digital initiatives and is also a new growth leader. It maintains a BUY on the stock with a revised target price of Rs 1100/share

Antique on ICICI Bank

We attended ICICI analyst day, which highlighted management’ plan to stay ahead in emerging Indian financial dynamics by leveraging on its digital platforms (via open architecture), partnerships and API integration, ecosystem, and partially decentralizing customer ownership at the branch level to gain market share with the customer at the center of planning and focus on risk calibrated return on core profitability. Select data/KPIs shared by the bank during the presentation are demonstrating robust pick-up and is reflected in a partnership led credit card acquisition of 2mn (Amazon Pay), merchant acquisition (2.3x), increase in throughput/average CA balances, the higher share of digital disbursements, and NTB activation (4.5mn) on its platform, more importantly, we see this as an endeavor of a strong franchise to adapt to the changing environment and to build scale on an already high asset base and improve profitability, execution on this front could ensure a sustainable healthy performance over medium to long term.

Nomura on ICICI Bank

Nomura on ICICI Bank | Further re-rating of ICICI Bank is contingent upon delivering steady EPS growth, said Nomura. The lender has managed the asset quality blips well through both the covid-19 waves and is fully geared to meet challenges of the digital disruption, the brokerage added.

Promoter/FII Holdings

Promoters held 0 percent stake in the company as of 30-Sep-2021, while FIIs owned 47.31 percent, DIIs 42.48 percent.