ICICI Bank - Q3FY14 Result First-Cut - Microsec

ICICI Bank Ltd. announced its Q3FY14 result on 29th January 2014.

The Bank's total income increased by 13.62% QoQ and 23.50% YoY to INR7056.07 crores, driven by 21.61% and 26.48% YoY growth in its Net Interest Income (NII) and other income respectively. Whereas, Profit After Tax (PAT) increased by 7.66% QoQ and 12.53% YoY to INR2532.21 crores. During the quarter, the Bank has increased its provisions by 88.39% YoY to INR694.64 crores.

The Bank's loans book and total deposits expanded by 15.99% and 10.67% YoY to INR332632 and INR316970 crores respectively. On the asset quality front, Gross NPA decreased by 3bps QoQ to 3.05% while, Net NPA increased by 9bps QoQ to 0.94%. The Bank has improved its low cost deposits base (CASA ratio) by 240bps YoY to 43.30%, which has helped it to improve its Net Interest Margin (NIM) by 1bps QoQ and 25bps YoY to 3.32%. Moreover, the Bank is well capitalized to support its growth trajectory with 16.81% of its Basel III Capital Adequacy Ratio (CAR), which is 781bps higher than the regulator's stipulated norm. Provision Coverage Ratio (PCR) healthy stood at 70%.

At the CMP of INR1023.30, the stock is trading at TTM P/BV of 1.73x. The current valuations of 1.52x FY14E and 1.46x FY15E Book Value looks attractive. We recommend a BUY on the stock.

Source : Equity Bulls

Keywords