ICICI Bank (Q2 FY13)

India Infoline News Service | Mumbai |

Modest loan growth; mix shifts towards corporate segment

CMP Rs1,078, Target Rs1,340, Upside 24.3%
  • Modest loan growth; mix shifts towards corporate segment
  • Average CASA ratio declines to 37.5% but could have likely bottomed out
  • Impressive NIM performance continues; outlook remains strong
  • Core fee income growth continues to disappoint
  • Asset quality stable; credit cost guidance maintained despite a chunky provisioning
  • Valuation re-rating to continue; revise target price to Rs1,340 

Result table (Standalone)

(Rs mn) Q2 FY13 Q1 FY13 % qoq Q2 FY12 % yoy
Total Interest Income 100,263 95,457 5.0 81,576 22.9
Interest expended (66,551) (63,527) 4.8 (56,512) 17.8
Net Interest Income 33,712 31,929 5.6 25,064 34.5
Other income 20,430 18,799 8.7 17,396 17.4
Total Income 54,142 50,729 6.7 42,460 27.5
Operating expenses (22,209) (21,235) 4.6 (18,922) 17.4
Provisions (5,079) (4,659) 9.0 (3,188) 59.3
PBT 26,854 24,835 8.1 20,350 32.0
Tax (7,293) (6,684) 9.1 (5,318) 37.1
Reported PAT 19,561 18,151 7.8 15,032 30.1
EPS 67.9 63.0 7.8 52.2 30.0

(Rs bn) Q2 FY13 Q1 FY13 % qoq Q2 FY12 % yoy
Loans 2,751 2,684 2.5 2,340 17.6
Deposits 2,814 2,678 5.1 2,451 14.8
LDR (%) 97.7 100.2 (2.5) 95.5 2.3
Total assets 4,971 4,835 2.8 4,407 12.8

(Rs mn) Q2 FY13 Q1 FY13 chg qoq Q2 FY12 chg yoy
NIM (%) 3.0 3.0 (0.0) 2.6 0.4
Yield on advances (%)* 10.8 10.6 0.2 10.1 0.7
Yield on investment (%)* 7.2 7.3 (0.2) 6.6 0.6
CASA (%) 40.7 40.6 0.1 42.1 (1.4)
C/D (%) 97.7 100.2 (2.5) 95.5 2.3
Non-interest income (%) 37.7 37.1 0.7 41.0 (3.2)
Cost to Income (%) 41.0 41.9 (0.8) 44.6 (3.5)
Provisions/Income (%) 9.4 9.2 0.2 7.5 1.9
BV (Rs) 559.0 546.6 12.4 508.5 50.6
RoE (%) 12.7 12.2 0.6 10.7 2.0
RoA (%) 1.7 1.6 0.1 1.4 0.2
CAR (%) 18.3 18.5 (0.3) 19.0 (0.7)
Gross NPA (%) 3.5 3.5 - 4.1 (0.6)
Net NPA (%) 0.8 0.6 0.2 0.8 (0.0)
Source: Company, India Infoline Research; * Computed by us

Modest loan growth in line with expectations; mix shifts towards corporate segment
ICICI Bank’s domestic corporate loan book grew at robust pace (38% yoy; normalized 27% yoy) for the second consecutive quarter. Credit expansion during the quarter included some short term loans to large corporate customers which are likely to mature before the year-end. A sharp decline in wholesale funding rates and relatively better pricing environment (as indicated by management) is likely to have driven the substantial increase in corp
BSE 311.10 0.55 (0.18%)
NSE 311.45 0.70 (0.23%)

***Note: This is a NSE Chart

 

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