ICICI Bank Q4 Results Review - Lower Opex Aid Earnings: Dolat Capital

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.ICICI Bank Ltd. posted robust quarter with steady net interest margin at 4.4% (-3 bps), healthy pre-provision operating profit growth at 17% YoY driven by contained opex, sustained improvement in asset quality metrics with slippages at 1.8%, and healthy loan growth in retail and SME/BB (at 4% and 5% respectively) driving return on asset of 2.4%.Management expects moderation in opex growth to sustain, barring seasonality around annual increments. Margins will continue to decline but are expected to remain range-bound until rate cuts. Credit costs should be less than 50 bps in FY25E. We factor in slightly lower opex and credit costs, resulting in 4-5% earnings upgrade over FY25/26E. Maintain ‘Buy’ rating at SOTP based target price of Rs 1325 (from Rs 1250 earlier), valuing standalone bank at 2.7 times FY26E price/adjusted boojk value against RoA/RoE of 2.1%/17% and adding value of subsidiaries..Click on the attachment to read the full report:.ICICI Bank Q4 Results Review - Credit Growth Slowdown; NIMs Stable QoQ: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

ICICI Bank Q4 Results Review - Lower Opex Aid Earnings: Dolat Capital

Margin trends continue to surprise on the positive

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ICICI Bank Q4 Results Review - Lower Opex Aid Earnings: Dolat Capital

Margin trends continue to surprise on the positive

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