ICICI Bank - Q1FY21 Results - Views of YES SECURITIES

Mr. Rajiv Mehta, Lead Analyst - Institutional Equities

ICICI Bank's operating performance in Q1 FY21 was much better than our expectations. Core pre-provisioning operating profit was 15% higher than our estimate, courtesy a better NII growth and a resilient fee performance despite substantially lower activity levels. The bank prudently utilized large gains on partial stake sale in insurance subsidiaries for significantly augmenting covid-related provisioning pool (now at 1.3% of loan book), and hence largely cushioning the balance sheet from future impact. The portfolio under moratorium as of June 30 at 17.5% was much lower than around 30% as of April end. Capital levels remain healthy and the planned equity raise would further bolster it. Expect a strong positive stock reaction on Monday; ICICI Bank remains one of our preferred picks in the sector.

Shares of ICICI BANK LTD. was last trading in BSE at Rs.381.85 as compared to the previous close of Rs. 392.3. The total number of shares traded during the day was 2437511 in over 33707 trades.

The stock hit an intraday high of Rs. 389 and intraday low of 372.15. The net turnover during the day was Rs. 929066358.

Source : Equity Bulls

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