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Target: ₹1,150
CMP: ₹989.75
ICICI Bank’s Annual Report highlights the progress the bank is making towards sustainable growth. This is evident from its strong contingency buffers and robust underwriting and risk-monitoring mechanisms, all of which contribute to safeguarding the company’s balance sheet.
ICICI Bank has been reporting a robust performance, led by a strong core PPOP, controlled provisions, and steady asset quality. A healthy mix of a high yielding portfolio (Retail/Business Banking) and a low-cost liability franchise has helped sharp margin recovery over FY23.
The bank is witnessing strong traction across key segments such as Retail, SME, and Business Banking. Asset quality trends remain steady, while additional Covid-19 provision buffer (1.2 per cent of loans) renders further comfort.
Ahead of the new growth cycle, the bank is well-positioned with a superior margin, strong RoE and asset quality, and robust capitalisation levels. We estimate ICIC Bank to deliver RoA/RoE of 2.2/17.7 per cent in FY25. We estimate earnings growth to moderate to 17 per cent CAGR over FY23-25.
This moderation is primarily due to a decline in margins and limited levers available for managing the opex/credit cost, resulting in a gradual stock performance.
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