Views on ICICI Bank results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP- Research – Banking, Angel Broking) on ICICI Bank results:

"ICICI Bank reported healthy operating performance during the quarter, which was in-line with our expectations. NII for the bank grew at healthy pace of 14.5% yoy to Rs.4,357cr, aided by healthy loan book growth of 16.7% (which was led by 23% growth in retail portfolio). Non-interest income grew strong by 34.8% yoy to Rs.2,976cr. The bank reported healthy pre-provisioning profit growth of 23.6% yoy. Overall earnings for the bank grew healthy at 15.1% yoy to Rs 2,652cr. On the asset quality front, absolute Gross NPAs increased marginally by 1.0% qoq, while net NPAs increased 5.8% qoq. Also fresh additions to the bank's outstanding restructured book was at around Rs2,156cr during the quarter (Rs2,050cr additions in 3QFY2014). Overall, the bank's asset quality performance during the quarter, was reasonable in light of prevailing macro environment. Though near term outlook for the bank remains challenging, given the current macro environment, from a structural point-of-view compared to peers, keeping in mind its robust franchise and capital adequacy (Total CAR at 17.7% and Tier-I at 12.8%), it remains one of the preferred banks, in our view, from a medium term perspective. We maintain Buy with a price target of Rs. 1,606."

Source : Equity Bulls

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