Maintain 'buy' on ICICI Bank - TP 1347 - Geojit BNP Paribas Financial Services

- PAT at Rs.2250 crore is higher than analysts' expectations and up 30.2% yoy. PAT has been better than expected due to lower provisions.

- NII is in line with expectations at Rs.3490 crore, which is up 29% yoy, led by 7bps qoq NIM expansion.

- Asset quality continues to improve qoq despite Rs.850 crore of gross slippages and credit cost at 51 bps of loans.

- Expected EPS raised 6% in FY13 and3% in FY14 and TP has been hiked 4% to Rs.1347.

- Management expects higher dividends to be sustained from its key subsidiaries, which appears a big positive.

- Lower credit costs continue to surprise positively.

- Loan growth at 16.5% y-y and 4.2% q-q, with domestic loans up 20.9% y-y and 4.4% q-q remains in line with guidance to date. Management expects loan growth to be driven by retail and working capital loans in corporate.

- Loan growth in FY13 is expected at 17.4% and it would be 16.2% in FY14.

Source : Equity Bulls

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