ICICI Bank BUY. Performance Highlights CMP. `928 Target Price `1,169. 1QFY2013 Result Update Banking. Investment Period 12 Months

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1 1QFY2013 Result Update Banking July 27, 2012 ICICI Bank Performance Highlights Particulars (` cr) 1QFY13 4QFY12 % chg (qoq) 1QFY12 % chg (yoy) NII 3,193 3, , Preprov. profit 2,949 3,112 (5.2) 2, PAT 1,815 1,902 (4.6) 1, ICICI Bank reported strong performance for 1QFY2013, with 36.2% growth in Net profit, which was inline with our estimates. Growth in earnings came largely on account of solid operating performance, with 32.0% yoy higher pre provisioning profits and was also aided by continued improvement on the asset quality front. Overall NIMs flattish sequentially; Asset quality improved marginally qoq: During the quarter, advances for the bank increased by healthy 21.6% yoy (5.8% qoq), aided by a strong 45.6% yoy (15.0% qoq) growth in corporate book, 37.0% yoy (5.0% qoq) growth in SME book, and 36.2% yoy growth in Overseas book (excl. positive impact of INR depreciation growth in overseas and overall advances would have been ~8.0% and ~17.0% yoy, respectively). Deposits accretion remained healthy during the quarter with growth of 16.1% yoy (4.8% sequentially). Despite healthy accretion in savings deposits, subdued current account deposits led the CASA ratio for the bank to decline to 40.6%. Domestic NIMs remained flat sequentially at 3.3%; while, Overseas NIMs improved by ~10bp to 1.6%. Growth in noninterest income (excl. treasury) remained moderate at 14.0% yoy, on back of moderation in corporate fee income. Misc. other income for the bank grew to `254cr from `90cr in 1QFY2012, aided mainly by higher dividend income of ~`208cr. The bank s asset quality improvement continued during this quarter as well, with both gross and net NPA ratio declining (though marginally), on a sequential basis. Provision coverage ratio remained healthy at 80.6%. The bank restructured additional advances worth ~`350cr during the quarter, in line with their guidance. As of 1QFY2013, their outstanding restructured book (which is stated post upgradation on one year of satisfactory performance) stood at `4,172cr. The management indicated that no major restructuring is in the pipeline. They also specified that based on their past experiences, slippages from restructured assets is ~56%. BUY CMP `928 Target Price `1,169 Investment Period 12 Months Stock Info Sector Banking Market Cap (` cr) 106,688 Beta Week High / Low 1059/641 Avg. Daily Volume 527,313 Face Value (`) 10 BSE Sensex 16,839 Nifty 5,100 Reuters Code ICBK.BO Bloomberg Code ICICIBC@IN Shareholding Pattern (%) Promoters MF / Banks / Indian Fls 27.7 FII / NRIs / OCBs 62.7 Indian Public / Others 9.6 Abs. (%) 3m 1yr 3yr Sensex (1.7) (8.6) 9.5 ICICI Bank 7.8 (9.4) 22.5 Outlook and valuation: The bank s substantial branch expansion in the past 34 years is expected to sustain a far more favourable deposit mix going forward. Moreover, a lower risk balance sheet has driven down NPA provisioning costs, which we believe will enable RoE of 15.5% by FY2014E (with further upside from financial leverage). At the CMP, the bank s core banking business (after adjusting for subsidiaries) is trading at 1.48x FY2014E ABV (including subsidiaries, at 1.46x FY2014E ABV). We maintain our Buy recommendation on the stock with a target price of `1,169. Key financials (Standalone) Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E NII 9,017 10,734 13,706 16,635 % chg Net profit 5,151 6,465 7,915 9,451 % chg NIM (%) EPS (`) P/E (x) Vaibhav Agrawal Ext: 6808 vaibhav.agrawal@angelbroking.com Varun Varma Ext: 6847 varun.varma@angelbroking.com P/ABV (x) Sourabh Taparia RoA (%) Ext: 6872 RoE (%) sourabh.taparia@angelbroking.com Please refer to important disclosures at the end of this report 1

2 Exhibit 1: 1QFY2013 performance (Standalone) Particulars (` cr) 1QFY13 4QFY12 % chg (qoq) 1QFY12 % chg (yoy) FY2012 FY2011 % chg (yoy) Interest earned 9,546 9, , ,543 25, on Advances / Bills 6,456 6, , ,130 16, on investments 2,702 2, , ,684 7, on balance with RBI & others (3.4) on others (12.8) 319 (17.0) 1,238 1,277 (3.1) Interest Expended 6,353 6, , ,809 16, Net Interest Income 3,193 3, , ,734 9, Other income 1,880 2,228 (15.6) 1, ,503 6, Other income excl. treasury 1,901 2,070 (8.2) 1, ,515 6, Fee income 1,647 1,728 (4.7) 1, ,707 6, Treasury income (21) 158 (113.3) (25) (16.0) (12) (215) (94.4) Other income (25.9) Operating income 5,073 5,333 (4.9) 4, ,237 15, Operating expenses 2,124 2,222 (4.4) 1, ,850 6, Employee expenses 987 1,103 (10.5) ,515 2, Other Opex 1,137 1, , ,335 3, Preprovision Profit 2,949 3,112 (5.2) 2, ,386 9, Provisions & Contingencies (0.7) ,583 2,287 (30.8) PBT 2,483 2,642 (6.0) 1, ,803 6, Provision for Tax (9.7) ,338 1, PAT 1,815 1,902 (4.6) 1, ,465 5, Effective Tax Rate (%) (111)bp bp bp Exhibit 2: 1QFY2013 Actual vs. estimates Particulars (` cr) Actual Estimates Var. (%) Net interest income 3,193 3, Other income 1,880 2,046 (8.1) Operating income 5,073 5,131 (1.1) Operating expenses 2,124 2, Preprov. profit 2,949 3,021 (2.4) Provisions & cont (16.4) PBT 2,483 2, Prov. for taxes (5.2) PAT 1,815 1, July 27,

3 Exhibit 3: 1QFY2013 performance analysis (Standalone) Particulars 1QFY13 4QFY12 % chg (qoq) 1QFY12 % chg (yoy) Balance sheet Advances (` cr) 268, , , Deposits (` cr) 267, , , CredittoDeposit Ratio (%) bp bp Current deposits (` cr) 30,754 34,973 (12.1) 29, Saving deposits (` cr) 77,923 76, , CASA deposits (` cr) 108, ,019 (2.1) 96, CASA ratio (%) (287)bp 41.9 (132)bp CAR (%) bp 19.6 (103)bp Tier 1 CAR (%) bp 13.4 (58)bp Profitability Ratios (%) Reported NIM bp bp Costtoincome ratio bp 44.9 (303)bp Asset quality Gross NPAs (` cr) 9,817 9, ,983 (1.7) Gross NPAs (%) (8)bp 4.4 (82)bp Net NPAs (` cr) 1,905 1, ,303 (17.3) Net NPAs (%) (2)bp 1.0 (33)bp Provision Coverage Ratio (%) bp bp Provision exps. to avg. assets (%) (1)bp 0.4 (5)bp Business growth healthy, Overall NIMs flattish qoq During 1QFY2013, advances for the bank increased by healthy 21.6% yoy (5.8% qoq), aided by a strong 45.6% yoy (15.0% qoq) growth in corporate book, 37.0% yoy (5.0% qoq) growth in SME book, and 36.2% yoy growth in Overseas book (excl. the positive impact of INR s depreciation, the growth in international advances and overall loan book would have been much lower at ~8.0% and ~17.0%, respectively). Rural segment loans degrew by 1.5% yoy (down by 7.4% qoq on account of higher priority sector lending in the 4QFY2012, reflecting the year ending phenomena). Retail loans grew at relatively slower pace of 9.0% yoy (1.3% qoq), partly due to the bank s conscious strategy to reduce the share of unsecured personal and credit card loans. Personal loans were lower by a sharp 57.2% yoy, while credit card loans were lower by 7.5% yoy. Secured vehicle and housing advances grew by 14.7% and 10.3% yoy, respectively. Consequently, the retail advances as proportion of overall loan book came at 34.0% as of 1QFY2013 compared to 37.5% as of 1QFY2012 and 35.5% as of 4QFY2012. Deposits accretion remained healthy during the quarter with growth of 16.1% yoy (4.8% sequentially). Consequentially, credit to deposit ratio for the bank rose sharply to 100.2% in 1QFY2013 from 99.3% in 4QFY2012 and 95.7% in 1QFY2012. Defying industry wide moderation, the bank managed healthy growth of 16.6% yoy in savings deposits. However, growth in current deposits remained muted at 3.2% yoy (though better than peers). Despite healthy accretion in savings deposits, subdued current account deposits led the CASA ratio for the bank to decline 132bp yoy (287bp sequentially) to 40.6%. July 27,

4 Reported overall NIM remained flat sequentially to 3.0%, mainly on account of flattish domestic NIMs despite marginal qoq improvement in overseas NIMs. Domestic NIMs remained flat sequentially at 3.3%. Overseas NIM further improved sequentially to 1.6% from 1.52% in 4QFY2012. Going ahead, Management expects the banks domestic loan book to grow by ~20% in FY2013 mainly driven by 1520% yoy growth in secured retail loans and 20%+ growth in corporate book emanating from existing sanctions. They anticipate the bank s consolidation in overseas loan book (in USD terms) to continue in current year as well, however depreciating INR might lead to growth in overseas loan book in INR terms. According to the management, overall NIMs for FY2013 are likely to improve sequentially to ~3.0% compared to 2.7% in FY2012. Exhibit 4: Strong credit growth, aided by INR depreciation Particulars (` cr) 1QFY13 4QFY12 % chg (qoq) 1QFY12 % chg (yoy) % to total Rural 20,669 22,328 (7.4) 20,987 (1.5) 7.7 Overseas 75,160 69, , Corporate 67,107 58, , SME 14,227 13, , Retail 91,266 90, , Housing 59,506 57, , Vehicle 25,828 26,572 (2.8) 22, Personal 1, ,345 (57.2) 0.4 Credit cards 2,555 2, ,763 (7.5) 1.0 Other retail 2,373 2, , Total Advances 268, , , Exhibit 5: CDR high due to overseas loan growth Exhibit 6: CASA ratio declines on subdued Current deposits Adv. qoq growth Dep. qoq growth CDR (%, RHS) CASA ratio (%) CASA yoy growth (%) RHS (3.0) July 27,

5 Exhibit 7: NIMs remains flat sequentially NIM (Reported, %) Exhibit 8: NII growth higher by 200bp, due to INR depreciation 3,350 3,200 3,050 2,900 2,750 2,600 2,450 2,300 2,150 2, NII (` cr) YoY growth (%, RHS) Fee income moderation continues During 1QFY2013, non interest income excl. treasury for the bank increased by 14.0% yoy to `1,901cr, on back of continued trends of moderation in the fee income. Fee income growth remained subdued at 4.4% yoy to `1,647cr, mainly due to moderation in corporate fee income despite traction witnessed in income from forex and derivative, transaction banking and remittance segments. The bank registered a treasury loss of `21cr compared to a loss of `25cr in 1QFY2012, as poor performance of the equities portfolio and `100cr MTM loss on securities receipts completely offset the MTM gain on the fixed income portfolio. Other income for the bank grew to `252cr from `90r in 1QFY2012, mainly aided by annual dividend of `133cr received from ICICI Bank Canada and `75cr recurring dividend from its life insurance subsidiary. The management has maintained its guidance for fee income growth in low double digits for FY2013, on account of, continued traction anticipated in transaction banking and remittance business; while stabilization is expected in corporate fee income. Exhibit 9: Other Income aided by dividends from subsidiaries Particulars (` cr) 1QFY13 4QFY12 % chg (qoq) 1QFY12 % chg (yoy) Fee income 1,647 1,728 (4.7) 1, Treasury (21) 158 (113.3) (25) (16.0) Others (25.7) Other income 1,880 2,228 (15.6) 1, Other income excl. treasury 1,901 2,070 (8.2) 1, July 27,

6 Exhibit 10: Fee income moderation continues Fee Income (` cr) yoy growth (%, RHS) 1,800 1,700 1,600 1, (3.5) 1,578 1,700 1,701 1,728 1, (5.0) Exhibit 11: Still healthy share of fee income in RoA Fee income to average assets (%) Asset quality continues to improve Continuing the trends in the past few quarters, the bank s asset quality improved during 1QFY2013 as well, with both gross and net NPA ratio declining (though marginally) by 8bp and 2bp, respectively on a sequential basis. As of 1QFY2013 gross NPA ratio stands at 3.5% (3.6% in 4QFY2012), while net NPA ratio stands at 0.7% (0.7% in 4QFY2012). PCR for the bank improved by 20bp during the quarter and remained healthy at 80.6%. During 1QY2013, annualized slippages ratio for the bank stood at 1.29%, compared to 1.17% in 4QFY2012 and 1.39% in 1QFY2012. The bank restructured additional ~`350cr during the quarter, in line with their guidance. As of 1QFY2013, their restructured book (which is stated at outstanding amount, post upgradation on one year of satisfactory performance) stood at `4,172cr. The management indicated that no major restructuring is in the pipeline. They also specified that based on their past experiences, slippages from total cumulative restructured book is ~56%. Further, they have maintained their guidance for credit cost (including standard asset provisioning) to be 75bp for FY2013. Exhibit 12: O/s Restructured book trends (` cr) 4,500 4,256 4,172 3,750 3,070 3,000 2,501 2,250 1,966 1, Exhibit 13: Declining NPAs with improving coverage Gross NPAs (%) Net NPAs (%) Coverage ratio (%, RHS) July 27,

7 Operating costs rise due to higher employee expenses Operating expenses increased by 16.7% yoy, primarily on back of 34.7% increase in employee expenses. However, the increase in operating income was much higher at 25.1% yoy, which led to a 303bp yoy decline in costtoincome ratio to 41.9%. Operating expenses to average assets ratio remained flat on a yoy basis at 1.8%. The management expects to maintain costtoincome ratio in the range of 4142% for FY2013. Exhibit 14: Higher staff costs increased total opex Other opex Staff exps Opex yoy growth (RHS) (` cr) (%) 2,500 2,000 1,500 1, , , ,080 1,103 1, , Exhibit 15: Costtoincome ratio lower on a yoy basis Costtoincome ratio (%) Opex to avg assets (%, RHS) Underleveraged branch network The number of branches for the bank has almost doubled over the past three years. Branch network improvement was partly aided by the merger with the Bank of Rajasthan. This extensive pan India network of 2755 branches as of 1QFY2013 is underleveraged, as reflected in the falling CASA deposits/branch of ~`39cr compared to `65cr as of 3QFY2008 and the total assets/branch of `175cr compared to `394cr as of 3QFY2008. Management plans to add branches in current year. Going forward, we expect the bank to leverage this network to grow its CASA market share. Exhibit 16: Robust branch expansion Exhibit 17: Underleveraged branch network 2,800 2,400 2,000 1,600 1, ,471 2,016 2,533 2, Total Assets/Branch (` cr) CASA Deposits/Branch (` cr, RHS) QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 July 27,

8 Overview of performance of subsidiaries Consolidated net profit for 1QFY2013 rose by a healthy 24.6% yoy to `2,077cr. Consolidated reported RoE s for 1QFY2013 improved to 13.3% from 12.0% in 1QFY2012. However, overseas subsidiaries of the bank (viz. ICICI Bank Canada and ICICI Bank UK) continue to remain a drag on the consolidated RoE s, as both remain over capitalized, reflecting bank s strategy of consolidating their operations (CAR in excess of 31% in both), and profitability also continue to decline for both of them (1QFY2013 PAT for ICICI Bank UK and ICICI Bank Canada declined by 12.0% and 3.3%, respectively). The bank received ~`133cr as annual dividend from its Canadian subsidiary in 1QFY2013. In the short term, we expect the overcapitalized subsidiaries to drag the consolidated RoEs. ICICI Prudential Life reported PAT of `349cr for 1QFY2013, registering a growth of 13.8% yoy and maintained its leadership position with a market share of 5.3% based on retail weighted received premium. The bank also received a dividend of `75cr in 1QFY2013 from ICICI life, which is expected to recur in the forthcoming quarters as well. ICICI Lombard General Insurance reported PAT of `83cr for 1QFY2013 compared to `40cr in 1QFY2012. ICICI Home Finance reported PAT of `49cr for 1QFY2013, which was lower by 30.4% on a yoy basis. 1QFY2013 performance of other smaller subsidiaries was healthy. Both ICICI Securities and ICICI Venture reported PAT growth of 20% yoy, while ICICI Securities PD registered strong 43.0% yoy growth in its PAT. Performance of ICICI AMC was moderate, as reported PAT grew by 12.0% yoy. July 27,

9 Exhibit 18: Performance of subsidiaries Subsidiary Parameter 1QFY13 1QFY12 % chg ICICI Bank UK PAT (USD mn) (12.0) ICICI Bank Canada PAT (CAD mn) (3.3) ICICI Bank Eurasia PAT (USD mn) 1.2 (0.3) (500.0) ICICI Home Finance PAT (` cr) (30.4) ICICI Prudential Life Insurance APE (` cr) NBP (` cr) NBP margin (%) (6.3) AuM (` cr) 70,435 67, PAT (` cr) ICICI Lombard Gen. Insurance Gross Premium (` cr) 1,532 1, PAT (` cr) ICICI Securities PAT (` cr) ICICI Securities PD PAT (` cr) ICICI Venture PAT (` cr) ICICI Prudential AMC PAT (` cr) Investment arguments Well positioned to garner strong market share gains in CASA deposits In our view, the bank s substantial branch expansion from 955 branches at the end of 3QFY2008 to 2,755 branches by 1QFY2013, and strong capital adequacy, at 18.5% (TierI at 12.8%) have positioned it to gain both CASA and credit market share, respectively. In fact, the bank has once again started gaining market share in savings accounts since FY2010. Over FY201012, the bank improved its market share of savings deposits by 14bp, capturing a substantial 5.6% incremental market share. Improved deposit mix to lead to better NIM The bank s strategic transformation has expectedly resulted in significantly better balance sheet and earnings quality. The distinguishing feature of the bank s performance in FY2010 was the improvement in CASA ratio to 42.1% (transformative considering that the ratio was as low as 22% at the end of FY2007 and 29% even as recently as FY2009). CASA ratio has remained healthy at 40.6% even in 1QFY2013. Apart from the paradigm shift in the deposit mix reflected in its 40.6% CASA ratio, the bank has largely exited unattractive business segments such as smallticket personal loans in the domestic segment and most nonindia related exposures in its international business. Asset quality trends remain healthy The bank s asset quality continues to show further improvement, with a stable to declining trend in additions to gross as well as net NPAs. For 1QFY2013 annualized gross slippages ratio stood at comfortable ~1.29%. Also, the bank has maintained a comfortable provision coverage ratio of 80.6% as of 1QFY2013. July 27,

10 Though, the bank has made addition of ~`350cr in its gross restructured book, its outstanding restructured book stated after upgradation of accounts on one year of satisfactory performance came down to ~`4,172cr. Further, the management has indicated that no major restructuring is in the pipeline. They also specified that based on their past experiences, slippages from restructured assets is ~56%. The reduction in risk profile of advances has expectedly resulted in commensurate decline in NPA provisioning costs and reflected in improved RoA from 1.0% in FY2010 to 1.3% in FY2012. Further management expects to improve its RoAs by ~20bp over FY201314E, which we believe is achievable. Valuations attractive We have a positive view on ICICI Bank, given its marketleading businesses across the financial services spectrum. Moreover, we believe the bank is decisively executing a strategy of consolidation, which has resulted in an improved deposit and loan mix and should drive improved operating metrics over the medium term. The bank s substantial branch expansion in the past 34 years is expected to sustain a far more favorable deposit mix going forward. Moreover, a lower risk balance sheet has driven down NPA provisioning costs, which we believe will drive 20.9% CAGR in net profit over FY201214E and enable RoE of 15.5% by FY2014E (with further upside from financial leverage). At the CMP, the bank s core banking business (after adjusting `153/share towards value of the subsidiaries) is trading at 1.48x FY2014E ABV (including subsidiaries, the stock is trading at 1.46x FY2014E ABV). We value the bank s subsidiaries at `153/share and the core bank at `1,016/share (2.0x FY2014E ABV). We maintain our Buy rating on the stock with a target price of `1,169. Exhibit 19: SOTP valuation summary Particulars Target multiple Value/share (`) ICICI Bank 2.0x FY2014E ABV 1,016 Life Insurance 16.0x FY2014E NBP 76 General Insurance 10x FY2012 PAT 14 Others (Home Fin, AMC, VC, Securities Securities PD and Overseas subsidiaries) 64 SOTP value 1,169 Source: Angel Research July 27,

11 Exhibit 20: Key assumptions Particulars (%) Earlier estimates Revised estimates FY2013 FY2014 FY2013 FY2014 Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Treasury gain/(loss) (% of investments) Source: Angel Research Exhibit 21: Change in estimates FY2013 Particulars (` cr) Earlier Revised Earlier Var. (%) estimates estimates estimates FY2014 Revised estimates Var. (%) NII 13,276 13, ,854 16, Noninterest income 9,092 8,650 (4.9) 11,004 10,522 (4.4) Operating income 22,368 22,356 (0.1) 26,857 27, Operating expenses 9,361 9,361 11,217 11, Preprov. profit 13,008 12,995 (0.1) 15,640 15, Provisions & cont. 1,991 1,938 (2.7) 2,397 2, PBT 11,017 11, ,243 13, Prov. for taxes 3,153 3,142 (0.3) 3,981 4, PAT 7,864 7, ,263 9, Source: Angel Research Exhibit 22: Angel EPS forecast vs. consensus Year (`) Angel forecast Bloomberg consensus Var. (%) FY2013E FY2014E Source: Bloomberg, Angel Research July 27,

12 Exhibit 23: P/ABV band 2,100 Price (`) 1x 1.5x 2x 2.5x 3x 1,800 1,500 1, Mar06 Jul06 Nov06 Mar07 Jul07 Nov07 Mar08 Jul08 Nov08 Mar09 Jul09 Nov09 Mar10 Jul10 Nov10 Mar11 Jul11 Nov11 Mar12 Jul12 Nov12 Mar13 Exhibit 24: P/E band 2,800 Price (`) 7x 17x 27x 37x 2,400 2,000 1,600 1, Apr05 Sep05 Feb06 Jul06 Dec06 May07 Oct07 Mar08 Aug08 Jan09 Jun09 Nov09 Apr10 Sep10 Feb11 Jul11 Dec11 May12 Exhibit 25: ICICI Bank Premium/Discount to the Sensex (%) 100 Premium/Discount to Sensex Avg. Historical Premium (20) (40) Apr06 Aug06 Dec06 Apr07 Aug07 Dec07 Apr08 Aug08 Dec08 Apr09 Aug09 Dec09 Apr10 Aug10 Dec10 Apr11 Aug11 Dec11 Apr12 Source: Bloomberg, Angel Research July 27,

13 Exhibit 26: Recommendation summary Company Reco. CMP (`) Tgt. price (`) Upside (%) FY2014E P/ABV (x) FY2014E Tgt. P/ABV (x) FY2014E P/E (x) FY201214E EPS CAGR (%) FY2014E RoA (%) FY2014E RoE (%) AxisBk Buy 998 1, FedBk Neutral HDFCBk Neutral ICICIBk* Buy 928 1, SIB Neutral YesBk Buy AllBk Buy AndhBk Neutral BOB Buy BOI Buy BOM Accumulate CanBk Buy CentBk Neutral CorpBk Buy DenaBk Buy IDBI# Buy IndBk Accumulate IOB Buy J&KBk Accumulate OBC Buy PNB Buy 716 1, SBI* Buy 1,941 2, SynBk Buy UcoBk Neutral UnionBk Buy UtdBk Buy VijBk Neutral ; Note:*Target multiples=sotp Target Price/ABV (including subsidiaries), # Without adjusting for SASF Company Background ICICI Bank is India's largest private sector bank, with a 5.5% market share in credit. The bank has a panindia extensive network of 2,750+ branches and 9,350+ ATMs as well as large overseas presence (overseas loans comprise 27% of total loans). The bank also has marketleading subsidiaries in life insurance, general insurance and asset management. July 27,

14 Income statement (Standalone) Y/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14E Net Interest Income 9,092 8,114 9,017 10,734 13,706 16,635 YoY Growth (%) 10.9 (10.8) Other Income 7,783 7,108 6,648 7,503 8,650 10,522 YoY Growth (%) (12.3) (8.7) (6.5) Operating Income 16,875 15,223 15,665 18,237 22,356 27,157 YoY Growth (%) (1.2) (9.8) Operating Expenses 7,045 5,860 6,617 7,850 9,361 11,252 YoY Growth (%) (13.6) (16.8) Pre Provision Profit 9,830 9,363 9,048 10,386 12,995 15,904 YoY Growth (%) 10.1 (4.7) (3.4) Prov. & Cont. 5,048 4,390 2,290 1,589 1,938 2,422 YoY Growth (%) 30.4 (13.0) (47.8) (30.6) Profit Before Tax 4,782 4,973 6,758 8,797 11,057 13,482 YoY Growth (%) (5.4) Prov. for Taxation 1,359 1,317 1,606 2,332 3,142 4,031 as a % of PBT PAT 3,423 3,656 5,151 6,465 7,915 9,451 YoY Growth (%) (17.7) Balance sheet (Standalone) Y/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14E Share Capital 1,463 1,465 1,502 1,503 1,503 1,503 Equity 1,113 1,115 1,152 1,153 1,153 1,153 Preference Reserve & Surplus 48,420 50,503 53,939 59,252 64,402 70,573 Deposits 218, , , , , ,547 Growth (%) (10.7) (7.5) Borrowings 67,324 60,947 72, , , ,911 Tier 2 Capital 25,482 32,967 36,391 37,615 38,367 39,134 Other Liab. & Prov. 18,265 15,501 15,987 17,577 20,559 24,758 Total Liabilities 379, , , , , ,427 Cash Balances 17,536 27,514 20,907 20,461 17,783 21,873 Bank Balances 12,430 11,359 13,183 15,768 18,390 21,925 Investments 103, , , , , ,955 Advances 218, , , , , ,502 Growth (%) (3.2) (17.0) Fixed Assets 3,802 3,213 4,744 4,615 5,221 6,037 Other Assets 24,164 19,215 16,347 19,515 22,761 27,135 Total Assets 379, , , , , ,427 Growth (%) (6.3) (4.4) July 27,

15 Ratio analysis (Standalone) Y/E March FY09 FY10 FY11 FY12 FY13E FY14E Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII () Prov. Exp Adj. NII Treasury (0.1) (0.0) Int. Sens. Inc Other Inc Op. Inc Opex PBT Taxes RoA Leverage RoE July 27,

16 Research Team Tel: Website: DISCLAIMER This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report. Disclosure of Interest Statement ICICI Bank 1. Analyst ownership of the stock No 2. Angel and its Group companies ownership of the stock No 3. Angel and its Group companies' Directors ownership of the stock No 4. Broking relationship with company covered No Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (5 to 5%) Reduce (5% to 15%) Sell (< 15%) July 27,