ICICI Bank - Q3FY13 - Bottomline aided by higher non-int income and lower provisioning - Emkay

(ICICIBC IN, MCAP US$26.2bn, CMP Rs1,200)

ICICI Bank Q3FY13 NII at Rs35bn (+29% yoy) marginally ahead of est. Reported NIM at 3.1% expanded 7bps qoq. Also, with higher non-int income and lower provisioning, net profit at Rs22.5bn (+30% yoy) significantly ahead of our / street est.

NII growth aided by 16.5% yoy / 4% qoq growth in loan portfolio. Global LDR has expanded to 100% vs 98% in Q2.Growth in deposits came in lower at 10% yoy / 2% qoq.

Other income at Rs22.2bn (+17% yoy) was ahead of estimates of Rs20-21bn and would be aided by higher trading gains.

Asset quality improves with GNPA at Rs97.6bn down 3% qoq. However, with lower provisioning (calc PCR at 78% vs 79% in Q2FY13), NNPA at Rs22bn grew 2% qoq.

At the CMP, the stock is quoting at 2.2x / 2.0x FY13 FY14 standalone ABV.

Source : Equity Bulls

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