ICICI Bank Ltd.
BSE Code/ NSE: 532174/ ICICIBANK
Face Value: Rs2
CMP: Rs 350
52 Weeks H/L (Rs): 375.25/ 256.50
Market Cap Rs (crore): 2,29,539
ICICI Bank is India’s largest private sector bank with total consolidated asset of Rs 11,242.81 billion (USD172.5 billion) as on March 31, 2018. It currently has a network of 4,867 branches and 14,367 ATMs across India. The board has appointed Sandeep Bakhshi as Managing Director and CEO of the Bank. The Bank has posted impressive numbers for Q2FY19.
During Q2FY19, its NII grew by 12.4% to Rs 6417.5 crore while its PAT declined 55.8% to Rs 909 crore against Rs 2058.19 crore. The NII increased by 11% at Rs 12520 crore during H1FY19 as against Rs 11299 crore in the corresponding period last year. The PAT stood at Rs 789 crore during H1FY19 as against Rs 4107 crore during the corresponding period last year. Net interest margin stood at 3.33% in Q2FY19. Fee income grew by 17% YoY in Q2FY19 driven by retail fee income growth of 21% YoY. Domestic loan growth grew at 16% YoY as on September 30, 2018 driven by retail. The Bank has recorded 15% YoY growth in current and savings account (CASA) deposits; outstanding CASA ratio at 50.8% was on September 30, 2018. Net NPA ratio decreased from 4.19% as on June 30, 2018 to 3.65% as on September 30, 2018. Provisions were Rs 3994 crore in Q2FY19 compared to Rs 4503 crore in Q2FY18. Bank has posted strong numbers in terms of asset quality and this scenario will remain for next 2-3 years. We are expecting strong numbers on PAT front in H2FY19. We recommend buying this stock in staggered manner for 12 to 15 months investment horizon.