ICICI Bank - Strong operating performance; Retain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs 1022
Target Price: Rs 1300

- ICICI Bank Q2FY14 NII/PPOP/PAT at Rs40.4/38.9/23.5bn beat consensus driven by better NIMs, and positive surprise on fee income (+17% yoy) and employee costs (-10% yoy)

- Global NIM at 3.31% (+4bps qoq) aided by 2bps/20qoq increase in domestic/ International NIMs. 5.4% qoq loan growth aided by better market share and growth in retail

- Ups guidance across operating numbers but also raises credit cost guidance to 90-100bp (vs. 75bp). Stressed assets# added at Rs22bn or 2.8% annualised

- Leaving numbers unchanged and building 16% CAGR in earnings over FY13-15E. Ability to weather NPA shocks provides comfort. Remains preferred bet in banking space.

Source : Equity Bulls

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