The share price of Bank Icici edged higher in the initial trade on January 24 after the company stated in December quarter income.
On January 22 Bank Icici reported more than 25% of net profit growth for Q3FY22, to Rs 6,193.81 Crore from Rs 4,939.59 Crore in the same quarter of the same year.
Net interest income (NII), or the bank’s core income that earns by providing loans, up 23.44% to RS 12,236.04 Crore from RS 9,912.46 Crore last year. Other income grew 6.42% to Rs 4,987.07 Crore.
Provisions and contingencies fell 26.8% to RS 2,007.30 Crore from RS 2,741.72 Crore Year-to-year.
Gross non-performing assets (NPA) rose 6.3% to RS 37,052.74 Crore at Q3FY22 from RS 34,860.43 Crore at Q3FY21. Slippage reached RS 4,018 Crore, lower than Rs 5,578 Crore in the previous quarter.
This is what the broker must say about the stock and the company posts the December Quarter:
Prabhudas Lilladher.
We believe that the momentum of bank growth will continue in 4Q also given 1) slip lower rs 40.2bn (annual 2.1% loan) reported with an increase in economic activity, 2) the quality of the asset quality has survived with strong recovery / enhancements, PCR Maintained at 80%, 80bps Covid contingency provisions (although W / Back RS10.5bn) and book restructuring at 120bps, and 3) Strong franchise power is reflected through solid growth both in obligations & assets with better managed risks, which Save Roes to move towards + 15% at FY23 & FY24.
We maintain our belief in purchases with the target price of RS 906 Revision (from RS 819) based on 2.6x Sep-23 ABV and RS 186 subspame (from RS 181).
The capital of Arihant.
We continue to maintain our positive attitude in a bank led by digital leveraging capabilities, getting a market share position, strong obligation franchise, sharp reduction in technology policies and faster.
We increase our FY22 revenue estimation of 9% to a factor in lower credit costs. We maintain our purchase ranking in stock with the revised SOTP target price from RS 968 (RS 942 before), based on 2.6x FY24E P / ABV for Standalone Bank and RS 163 for subsidiaries
Oswal Maleral.
The stable mixture of high-yielding portfolios (retail / business) and low-cost franchises trigger a stable growth of NII. Banks see strong recovery in business trends throughout the main segments such as retail, SMEs and business banking.
Fresh Slip has receded which leads to sustainable moderation in credit costs, while PCR remains the best in the industry at ~ 80%. Additional Covid-19 allowance buffer (79bp loan) makes further comfort.
We raise our FY22E / 23E income of 3% / 4% and estimate the bank to produce ROA / ROE FY24 which was increased by 2.0% / 17% respectively.
We maintain our purchase rating with SOTP-based target prices of Rs 1,100 (based on 3x FY24E ABV), implying a 37% potential upside down. ICICI Bank remains our main choice in this sector.
Research LKP
We expect book loans to grow in 19% CAGR over FY21-23E, led by technology initiatives. Normalization of credit costs is taking place.
We estimate the ratio of ROA / ROE’s return of 1.9% and 15.8% in FY22E. We value independent entities at 3.3xFy23E BVPS (RS 278) and investment in subsidiaries and JVS (Rs 127 per share); We arrived at the price target of Rs 1,045. We recommend buying with a 30% reverse potential
Credit Suisse.
Research House has maintained a outperforming call and raises the target price to Rs 930 from Rs 900 because he believes the leadership of growth will help the company to retain ranked.
This increases EPS 2022E of 4.4% at lower credit costs and better cost growth and remains the preferred choice.
JP Morgan.
The JPMorgan Foreign Brokerage Company has maintained an overweight call on shares with a target at RS 930 as a company can continue to drive a stable low risk refund with consistent EPS compounding.
Multiples still have space to rate again.
Broking House increases EPS estimates by 7% for FY23 / 24 factors in lower credit costs.
At 9:17 HR Icici Bank quoted at RS 805.15, Up RS 0.55, or
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