Views on ICICI Bank 3QFY2016 Results : Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research- Banking, Angel Broking) on ICICI Bank 3QFY2016 Results:

"ICICI Bank reported disappointing set of number for 3QFY2016 results with PAT growth of 4.5% YoY to INR 3,018cr in 3QFY2016 which was below our expectations. NII grew at steady pace of 13.3% YoY which was in-line with the expectations likely due to growth in advances at 15.8% YoY.

However, the bank disappointed on the asset quality front since the Gross NPA ratio rose by 95bp QoQ to 4.72% while the Net NPA ratio rose by 63bps QoQ to 2.28% in 3QFY2016. The increase in the NPA ratios is due to decline and continuing weakness in the global steel cycle; and also due to RBI's directives of early and conservative recognition of stressed assets and provisioning thereof by March 31, 2016. Provisions spiked up 190.3% YoY to INR 2,844.1cr as compared to INR 942.2cr for 2QFY2016 and INR 979.7cr for 3QFY2015. At CMP, the bank's core banking business (after adjusting INR 67/share towards value of subsidiaries) is trading at 1.2x FY2017E ABV. We recommend ACCUMULATE rating on the stock."

Shares of ICICI BANK LTD. was last trading in BSE at Rs.230.1 as compared to the previous close of Rs. 232.95. The total number of shares traded during the day was 3017284 in over 22265 trades.

The stock hit an intraday high of Rs. 233.9 and intraday low of 216. The net turnover during the day was Rs. 680607184.

Source : Equity Bulls

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