IDBI Capital: ICICI Bank - Better Prepared To Pass Through Storm
Customers wearing protective masks wait in line at an ICICI Bank Ltd. branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

IDBI Capital: ICICI Bank - Better Prepared To Pass Through Storm

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

ICICI Bank Ltd. is well prepared among its peers to weather the Covid-19 storm with -

a) highest provision coverage ratio (at 75%), b) highest Covid-19 provisions (1.3% of advances), and c) higher home loan portfolio (31% of advances).

Strong liability franchise and higher Tier-I capital ratio will advantage bank when the economy growth recovers.

We expect credit growth for the bank to remain higher than the banking industry led by market share gain.

We expect loan growth and margin to improve, thus resulting into 50 basis points YoY improvement in return on asset over FY20- FY22E to 1.3%.

While the uncertainty over the impact of Covid-19 would weigh on the valuation in the near term but we expect ICICI Bank to emerge stronger given strength in its business model.

Click on the attachment to read the full report:

IDBI Capital ICICI Bank Initiating Coverage 030920.pdf

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This report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint.

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