ICICI Bank - Q2FY14 Result - First Cut - Microsec

ICICI Bank Ltd. announced its Q2FY14 result on 25th October 2013.

Bank's total income marginally down by 1.50% QoQ while up by 14.70% YoY to INR6209.99 crores. Whereas, Profit After Tax (PAT) increased by 3.42% QoQ and 20.24% YoY to INR2352.05 crores. For the half year ended H1FY14, total income increased by 19.34% YoY to INR12514.76 crores whereas, PAT increased by 22.67% YoY to INR4626.27 crores.

During the quarter, Bank's loan book and total deposits expanded by 15.53% and 9.81% YoY to INR317786.23 and INR309046.15 crores respectively. On the asset quality front, Bank has improved its Gross NPA by 15bps QoQ and 46bps YoY to 3.08% while Net NPA increased by 3bps QoQ and 7bps YoY to 0.85%. Moreover, Bank has improved its low cost deposit (CASA) by 10bps QoQ and 260bps YoY to 43.30% which has helped it to improved its Net Interest Margin (NIM) by 4bps QoQ and 31bps YoY to 3.31%. Bank is well capitalized to support its growth trajectory, Basel III-Capital Adequacy Ratio (CAR) stood at 16.50%. Provision Coverage Ratio (PCR) healthy stood at 73.10% which positioned it to tame any time liabilities.

Valuations

At the CMP of INR1021.65, ICIC Bank is trading at TTM P/BV of 1.72x. The current valuation of 1.55x FY14E Book Value looks attractive. We have a coverage on the stock with a TP of INR1205. Although our TP was met earlier, we recommend the stock as BUY at CMP with the same TP of INR1205 with a 1-year perspective.

Source : Equity Bulls

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