Views on ICICI Bank 1QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on ICICI Bank 1QFY2016 Results:

"ICICI Bank reported 1QFY2016 results with PAT growth of 12.1% yoy to INR 2976cr in 1QFY2016, while asset quality improved on sequential basis. NII grew at steady pace at 13.9% yoy with 15.2% yoy growth in advances. Domestic advances grew by 17%. Bank continues to grow its retail franchise and has seen healthy growth in retail loan book at 25% yoy. Non-interest income grew at moderate pace at 4.9% yoy due to lower treasury income. Opex grew by 8.6% yoy, resulting in pre-provision profit growth of 11.5%. On the asset quality front, Gross NPA ratio fell by 10bps qoq to 3.68% and Net NPA ratio declined by 3bps qoq to 1.58% in 1QFY2016. At CMP, the bank's core banking business (after adjusting Rs 46/share towards value of subsidiaries) is trading at 1.7x FY2017E ABV. We recommend BUY rating on the stock."

Shares of ICICI BANK LTD. was last trading in BSE at Rs.302.5 as compared to the previous close of Rs. 290.95. The total number of shares traded during the day was 4320287 in over 31855 trades.

The stock hit an intraday high of Rs. 308.9 and intraday low of 293.6. The net turnover during the day was Rs. 1310399071.

Source : Equity Bulls

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