Geojit has given Buy recommendation for ICICI Bank with a target price of Rs. 788 in its research report issued on Jul 29, 2021
Geojit’s research report on ICICI Bank
For Q1FY22 standalone, Net interest income went up 17.8% YoY with marginal +20bps YoY expansion in NIM to 3.89%. Pre-provisioning profit reached Rs. 8,894cr (-17.5% YoY) impacted by 290bps YoY rise in cost-to-income ratio. However, PAT surged 77.6% with PCR 78.2%, owing to lowered provisions. Commercial and rural banking loans to act as growth catalyst in the upcoming quarter. Strong liquidity may be diverted into loan growth as credit demand recovers. Asset quality has been comparatively strong with bank having made adequate provisioning in-line with the risk profile.
Hence, we maintain our rating as BUY and value the stock at 2.2x FY23E BVPS with a revised target price of Rs. 788 based on SOTP.