Views on ICICI Bank Ltd 3QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on ICICI Bank Ltd 3QFY2017 Results:

"ICICI Bank's results for the quarter have been in line with expectations. Slippages of INR 7,037 cr was lower than 2QFY2017 and the comforting factor is that 75% of the slippages has come in from the known accounts (watch list). Slippages from the non watch list corporate was ~ INR 1,660 cr and remained at similar levels like Q2FY17, which indicates that large part of the asset quality issues for the bank will remain within the watch list itself. While overall loan growth remained muted, the retail demand continued to be strong up 18%.

The bank has been selective as far as lending to large corporate is concerned and hence till the time overall macro scenario doesn't improve, retail should continue to be the growth driver. Though earnings will remain muted for next couple of quarters, large part of the asset quality issues are behind now for the bank and hence we feel investor's interest to come back in the stock. We continue to have a BUY rating on the stock with a target price of INR 315."

Shares of ICICI BANK LTD. was last trading in BSE at Rs.281.4 as compared to the previous close of Rs. 285.55. The total number of shares traded during the day was 875244 in over 11958 trades.

The stock hit an intraday high of Rs. 285.7 and intraday low of 278.8. The net turnover during the day was Rs. 246290645.

Source : Equity Bulls

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