ICICI Bank Q1 Results Review - Credit Growth Remain Strong; Net Interest Margins Stable: IDBI Capital

IDBI Capital Report

ICICI Bank Ltd. reported strong credit growth at 16% YoY better than its peers while deposit growth slowed down to 15% YoY (versus 20% YoY FY24). We expect 15% compound annual growth rate (FY24-26E) loan growth. Net interest margins declined slightly by 4 bps QoQ to 4.36% led by decline in yields.

Further, management guided yield on advances to remain stable in near future. Asset quality remains stable although slippages increased due to agri non-performing asset.

ICICI Bank reported strong profitability growth at 15% YoY led by lower provisions. Pre-provision operating profit grew by 13% YoY led by lower net interest income growth (up 7% YoY).

Lower credit costs led by better recoveries resulted in best return ratios in last few years; return on asset at 2.3%. We have maintained estimates and ‘Buy’ rating with a new target price of Rs 1,400 (Rs1,375), valuing parent business at Rs 1,187 at 2.6 times price/adjusted book value FY26E and rest for the subsidiaries.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.