Emkay Global Financial has given Buy recommendation for ICICI Bank with a target price of Rs. 825 in its research report issued on Aug 25, 2021

Emkay Global Financial’s report on ICICI Bank

The RBI’s term extension for two years, instead of the general practice of a three-year extension, is in line with the valid board/shareholder approval for his appointment for a five-year period from October 15, 2018, to October 23, 2023. Thus, it should not be seen as a short-term extension by the RBI similar to RBL/DCB. Mr. Bakhshi’s age is 61 years and so he is eligible to hold the MD & CEO position till the age of 70 years, as per the companies’ act/ RBI policies.. Thus, he would be eligible for at least two more term extensions beyond 2023, subject to his consent and board/shareholder approval. These term extensions will also be within the overall term cap of 15 years for non-promoter MD & CEO/WTD. Under the leadership of Mr. Bakhshi, the bank has seen a major transformation across business and financial parameters. The bank has steered well through the pandemic, building strong provision/capital buffers and is raring to go for growth with a clear focus on sustainable profitability, in our view.


ICICI remains our top pick in the sector. Retain Buy/OW in EAP with a TP of Rs825 (2.5x Sep’23E ABV + subs value of Rs170), given its solid growth trajectory, superior core profitability, healthy capital/provision buffers, and management credibility/stability unseen in the past.

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