ICICI Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 468582.65 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 38852.60 Crore, down -10.93 % from last quarter Total Income of Rs 43621.29 Crore and up 2.41 % from last year same quarter Total Income of Rs 37939.32 Crore. The bank reported net profit after tax of Rs 4747.42 Crore in latest quarter.
Investment Rationale
ICICI Bank reported a strong earnings performance, led by robust core PPOP performance and controlled provisions. The steady mix of high yielding portfolio such as Retail/Business banking portfolio, deployment of excess liquidity, and low cost liability franchise is aiding margin expansion. COVID 2.0 has disrupted collections, leading to elevated slippages in the Retail/Business Banking portfolio. However, the management is confident of improved asset quality trends over FY22, mainly from 2H onwards. Restructured loans remain under control at 0.7% of loans. Provision coverage remains best in the industry and additional COVID-19 provision buffer (0.9% of loans) provides comfort on normalization in credit cost. It expects RoA/RoE to improve to 1.8%/15.3% for FY23E.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 59.2 per cent, DIIs 32.9 per cent and public and other 7.9 per cent.
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