ICICI Bank BUY. Performance Highlights. CMP `1,152 Target Price `1,352. 4QFY2013 Result Update Banking

Transcription

1 4QFY2013 Result Update Banking April 29, 2013 ICICI Bank Performance Highlights BUY CMP `1,152 Target Price `1,352 Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) NII 3,803 3, , Preprov. profit 3,604 3, , PAT 2,304 2, , ICICI Bank delivered a healthy performance for 4QFY2013, with net profit growth of 21.2% yoy. On the operating front, the bank witnessed a healthy 22.5% yoy growth in its Net interest Income; however, disappointment on the noninterest income (excl. treasury) front, which grew at a muted 2.2% yoy, limited the operating profit growth to 15.8% yoy. On the asset quality front, the bank reported sequentially stable NPA ratios and incremental restructuring at ~`800cr, which is on guided lines. Business growth moderates; NIMs improve sequentially by 26bp: During 4QFY2013, the bank s advances grew by 14.4% yoy, aided by a strong 30.0% yoy growth in the domestic corporate book, due to bulky short term lending done earlier during the year. Growth in the retail portfolio was moderate at 11.4% yoy, as buyouts were significantly lower this year. On the deposits front, the bank witnessed growth of 14.5 % yoy. CASA accretion was lower than peers at 10.4% yoy, primarily aided by savings deposits, which increased by 12.6% yoy, even as current deposits grew at a subdued pace of 5.6% yoy. The CASA ratio declined by around 150bp yoy to 41.9%. The reported overall NIM improved by 26bp qoq to 3.3%, mainly on account of a 23bp sequential improvement in the domestic NIM to 3.7%, while international NIMs remained stable sequentially at 1.3%. Growth in Noninterest income (excluding treasury) came in modest at 2.2% yoy, as corporate fee income was down more than 30% yoy. During the quarter, the bank registered treasury gains of `93cr (primarily bond gains, with the equity portfolio witnessing MTM losses) as against `158cr in 4QFY2012. On the asset quality front, the bank reported flat Gross and net NPA ratio at 3.2% and 0.8%, respectively. During the quarter, the bank restructured loans worth `788cr, on guided lines, thereby taking its restructured book to `5,315cr. As per the Management, advances worth `700cr remain in the pipeline for restructuring. Outlook and valuation: The bank s substantial branch expansion in the past three to four years and strong capital adequacy has positioned it to grow at least by a few percentage points higher than the average industry growth. Moreover, a lower risk balance sheet has driven down NPA provisioning costs. Further improvement in risk adjusted NIMs and higher growth is expected to drive a 15.5% CAGR in net profit over FY and enable a RoE of 15.6% by FY2015E (with further upside from financial leverage). At the current market price, the bank s core banking business (after adjusting `158/share towards value of the subsidiaries) is trading at 1.71x FY2015E ABV (including subsidiaries, the stock is trading at 1.66x FY2015E ABV). We value the bank s subsidiaries at `158/share and the core bank at `1,195/share (2.1x FY2015E ABV). We recommend Buy rating on the stock with a target price of `1,352. Key financials (Standalone) Y/E March (` cr) FY2012 FY2013 FY2014E FY2015E NII 10,734 13,866 16,472 19,472 % chg Net profit 6,465 8,325 9,676 11,104 % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%) Investment Period Stock Info 12 Months Please refer to important disclosures at the end of this report 1 Sector Banking Market Cap (` cr) 132,935 Beta Week High / Low 1231/767 Avg. Daily Volume Face Value (`) 10 BSE Sensex 19,388 Nifty 5,904 Reuters Code ICBK.BO Bloomberg Code ICICIBC@IN Shareholding Pattern (%) Promoters MF / Banks / Indian Fls 24.2 FII / NRIs / OCBs 67.3 Indian Public / Others 8.6 Abs. (%) 3m 1yr 3yr Sensex (3.0) ICICI Bank (4.0) Vaibhav Agrawal Ext: 6808 vaibhav.agrawal@angelbroking.com Sourabh Taparia Ext: 6872 sourabh.taparia@angelbroking.com Akshay Narang Ext: 6829 akshay.narang@angelbroking.com Harshal Patkar Ext: 6847 harshal.patkar@angelbroking.com

2 Exhibit 1: 4QFY2013 performance (Standalone) Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy) Interest earned 10,365 10, , ,076 33, on Advances / Bills 6,971 7,066 (1.3) 6, ,341 22, on investments 2,820 2, , ,009 9, on balance with RBI & others (1.4) on others ,182 1,238 (4.5) Interest Expended 6,562 6,639 (1.2) 6, ,209 22, Net Interest Income 3,803 3, , ,866 10, Other income 2,208 2,215 (0.3) 2,228 (0.9) 8,346 7, Other income excl. treasury 2,115 1, , ,851 7, Fee income 1,775 1, , ,902 6, Treasury income (62.9) 158 (41.1) 495 (12) Other income (0.7) Operating income 6,011 5, , ,212 18, Operating expenses 2,407 2, , ,013 7, Employee expenses 1, ,103 (9.4) 3,893 3, Other Opex 1,408 1, , ,120 4, Preprovision Profit 3,604 3, , ,199 10, Provisions & Contingencies (2.0) 1,803 1, PBT 3,144 3, , ,397 8, Provision for Tax ,071 2, PAT 2,304 2, , ,325 6, Effective Tax Rate (%) (31)bp 28.0 (131)bp bp Exhibit 2: 4QFY2013 Actual vs estimates Particulars (` cr) Actual Estimates Var. (%) Net interest income 3,803 3, Other income 2,208 2,360 (6.4) Operating income 6,011 6,063 (0.9) Operating expenses 2,407 2,474 (2.7) Preprov. profit 3,604 3, Provisions & cont PBT 3,144 3,207 (2.0) Prov. for taxes (3.1) PAT 2,304 2,340 (1.5) April 29,

3 Exhibit 3: 4QFY2013 performance analysis (Standalone) Particulars 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) Balance sheet Advances (` cr) 290, , , Deposits (` cr) 292, , , CredittoDeposit Ratio (%) (93)bp 99.3 (11)bp Current deposits (` cr) 36,926 35, , Saving deposits (` cr) 85,651 81, , CASA deposits (` cr) 122, , , CASA ratio (%) bp 43.5 (156)bp CAR (%) (79)bp bp Tier 1 CAR (%) (45)bp bp Profitability Ratios (%) Reported NIM bp bp Costtoincome ratio bp 41.7 (161)bp Asset quality Gross NPAs (` cr) 9,608 9,763 (1.6) 9, Gross NPAs (%) (9)bp 3.6 (40)bp Net NPAs (` cr) 2,231 2, , Net NPAs (%) bp 0.7 4bp Provision Coverage Ratio (%) (90)bp 80.4 (360)bp Slippage ratio (%) (11)bp 1.2 5bps Provision exps. to avg. assets (%) bp 0.4 (6)bp Business growth moderates; NIM higher by 26bp qoq During 4QFY2013, the bank s advances grew by 14.3% yoy (1.2% qoq), aided by a strong 30.0% yoy growth in the Domestic corporate book. Growth in the corporate portfolio was due to increased working capital funding and project loans disbursement from existing sanctions. Going forward, the Management expects moderation in domestic corporate loan book from current levels and targets around 20% yoy growth in total domestic loan book for FY2014. Overseas loan book grew at a subdued pace of 5.6% yoy, primarily on account of INR depreciation. In dollar terms, overseas advances remained flat on a yoy basis. Going forward, the Management targets overseas loan book growth of 10% yoy for FY2014, which would be driven largely by the appetite of the borrowers for foreign currency loans over domestic rupee loans. Growth in the retail loan portfolio came in moderate at 11.4% yoy, however the organic retail portfolio (after excluding buyouts and Interbank participation certificates) for the bank grew strongly by 25.6% on a yearly basis. Within retail, robust traction was witnessed in mortgages, which grew by 18.2% yoy. Going forward, the Management targets a retail loan book growth of 25% yoy for FY2014, which would primarily come from growth in mortgages and in the vehicles loan book. Deposits accretion was modest with a growth of 14.5% yoy (2.2% qoq). The growth in CASA deposits was lower than peers at 10.4% yoy (4.6% qoq). While savings deposits increased by 12.6% yoy (5.1% qoq), the current deposits increased by April 29,

4 5.5% yoy (3.5% qoq). As of 4QFY2013, the CASA ratio improved sequentially by 100bp to 41.9% (though lower by 160bp yoy). The average CASA improved to 38.1% in 4QFY2013. Going forward, the Management expects CASA ratio to remain stable at the current levels. The reported overall NIM improved by 26bp sequentially at 3.3%, mainly on account of 23bp qoq improvement in domestic NIM to 3.7%, while International NIMs remained flat at 1.3%. Lower margins were because of excess liquidity in the overseas market. Going ahead, the Management expects overall margins to improve by 10bp in FY2014 over FY2013. Exhibit 4: Higher Domestic Corporate lending aided loan book growth Particulars (` cr) FY2013 FY2012 % chg (yoy) % to Total Domestic Corporate 94,331 82, Overseas branches 73,433 78,574 (6.5) 25.3 SME 15,093 17,206 (12.3) 5.2 Retail 107, ,971 (1.4) 37 Home 57,562 55, Vehicle loans 25,989 30,076 (13.6) 9.0 Others 13,209 11, Business Banking 6,336 7,846 (19.2) 2.2 Credit cards 2,685 2,833 (5.2) 0.9 Personal loans 1,611 1, Total advances 290, , Exhibit 5: Business growth moderates Exhibit 6: CASA ratio improves sequentially to 41.9% (3.0) Adv. yoy growth Dep. yoy growth CDR (%, RHS) CASA ratio (%) CASA yoy growth (%) April 29,

5 Exhibit 7: Reported NIM improves by 26bp qoq NIM (Reported, %) Exhibit 8: NII growth continues to remain strong NII (` cr) YoY growth (%, RHS) 4, , , ,200 2,900 2,600 2,300 2, Fee income moderation continues During 4QFY2013, the noninterest income (excluding treasury) for the bank grew at subdued 2.2% yoy to `2,115cr, as trends of moderation in the fee income continued. Fee income grew at a muted pace of 2.7% yoy, on back of lower corporate banking fee income on account of slowdown in financial closures. Going forward, the Management expects improvement in overall fee income and targets lower double digit growth in fee income. The bank registered lower treasury gain of `93cr (primarily bond gains, with the equity portfolio witnessing MTM losses) as against `158cr in 4QFY2012. Income from other segment remained flat at `340cr. Overall, other income for the bank came in flat at `2,208cr. Exhibit 9: Muted growth in Fee income, affects other income performance Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) Fee income 1,775 1, , Treasury (62.9) 158 (41.1) Others (0.6) Other income 2,208 2,215 (0.3) 2,228 (0.9) Other income excl. treasury 2,115 1, , April 29,

6 Exhibit 10: Fee income moderation continues Exhibit 11: Still, healthy share of fee income in RoA 1,800 1,700 Fee Income (` cr) yoy growth (%, RHS) Fee income to average assets (%) ,600 (3.5) ,500 1,728 1,647 1,709 1,771 1,775 (5.0) Asset quality remains stable sequentially During 4QFY2013, the bank reported stability on the asset quality front, as gross NPA levels improved sequentially by 1.6%, on an absolute basis, primarily aided by sequentially lower slippages. Slippages for the quarter came in at `779cr (annualized slippages rate at 1.2%) compared to `850cr in 3QFY2013 and `635cr in 4QFY2012. Gross NPA ratio declined sequentially by 9bp qoq to 3.3%, while net NPA ratio remained stable at 0.8% sequentially. The PCR for the bank as of 4QFY2013 stands healthy at 76.8%. During the quarter, the bank restructured loans worth `788cr (though higher, but was on expected lines), thereby taking its restructured book to `5,315cr. As of 4QFY2013, as per the Managements guidance, advances worth `600700cr remain in the pipeline for restructuring. Exhibit 12: Steep rise in O/s Restructured book Exhibit 13: Asset quality stable sequentially (` cr) 6,000 5,250 4,500 3,750 3,000 2,250 1, ,256 4,172 4,158 4,169 5, Gross NPAs (%) Net NPAs (%) Coverage ratio (%, RHS) Underleveraged branch network The number of branches for the bank has almost doubled over the past three years. The branch network improvement was partly aided by the merger with Bank of Rajasthan. This extensive panindia network of 3,100 branches as of 4QFY2013 is underleveraged, as reflected in the falling CASA deposits/branch of `39.5cr compared to `49.8cr as of 4QFY2008 and the total assets/branch of `173cr compared to `306cr as of 4QFY2008. Going forward, we expect the bank to leverage this network to further grow its CASA market share. April 29,

7 Exhibit 14: Largest Pvt. Sector branch network Exhibit 15: Scope for improvement in business/branch 3,500 3,000 2,500 2,000 1,500 1, ,016 1QFY11 2,501 2QFY11 2,512 3QFY11 2,529 4QFY11 2,533 1QFY12 2,535 2QFY12 2,552 3QFY12 2,752 4QFY12 2,755 1QFY13 2,772 2QFY13 2,895 3QFY13 3,100 4QFY QFY10 1QFY11 Total Assets/Branch (` cr) CASA Deposits/Branch (` cr, RHS) 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY Overview of performance of subsidiaries The consolidated net profit for FY2013 rose by a healthy 25.7% yoy to `9,604cr. The consolidated reported RoEs for FY2013 improved to 14.7% from 13.0% in FY2012. The overseas subsidiaries of the bank (viz ICICI Bank Canada and ICICI Bank UK) remain overcapitalized, reflecting the bank s strategy of consolidating their operations (CAR in excess of 30% in both). Profitability wise, while ICICI Bank Canada witnessed a strong performance with earnings growth of 26.7% yoy at CAD43.6mn, ICICI Bank UK reported a profit degrowth of 43.3% yoy at USD14.4mn. ICICI Prudential Life reported a PAT of `1,496cr for FY2013 and maintained its leadership position amongst private insurers, with a market share of 7.2% (AprilFebruary 2012) based on new business retail weighted received premium. During April 2012 to February 2013, the retail weighted received premium for ICICI Life increased by 16.3% compared to a 2.2% yoy growth for the private sector. ICICI General reported a PAT of `306cr for FY2013 compared to a loss of `416cr in 4QFY2012. During the quarter, ICICI Bank infused `74cr in this subsidiary, considering impact of the third party motor pool losses incurred by it in the last 2 years. ICICI Home Finance reported a PAT of `220cr for FY2013, which was lower by 15.3% on a yoy basis. Other smaller subsidiaries reported a mixed performance for FY2013. While ICICI Securities dealership & ICICI AMC reported a PAT growth of 41.8% yoy and 25.0% yoy, PAT for ICICI Venture came in at `20cr compared to `68cr in FY2012 and PAT for ICICI Securities (consolidated) came at `64cr as compared to `78cr in FY2012. April 29,

8 Exhibit 16: Performance of subsidiaries Subsidiary Parameter FY2013 FY2012 % chg ICICI Bank UK PAT (USD mn) (43.3) ICICI Bank Canada PAT (CAD mn) ICICI Bank Eurasia PAT (USD mn) ICICI Home Finance PAT (` cr) (15.4) ICICI Prudential Life Insurance APE (` cr) 3,532 3, NBP (` cr) ICICI Lombard Gen. Insurance NBP margin (%) AuM (` cr) 74,164 70, Gross Premium (` cr) 6,420 5, PAT (` cr) 306 (416) (173.6) ICICI Securities PAT (` cr) (17.9) ICICI Securities PD PAT (` cr) ICICI Venture PAT (` cr) (70.6) ICICI Prudential AMC PAT (` cr) Investment arguments Well positioned to step up growth ICICI Bank has strategically transformed itself over the past five years, which has expectedly resulted in a significantly better balance sheet and earnings quality. CASA ratio, which was 29% at the end of FY2009, has improved to around 42% as of FY2013. Apart from the paradigm shift in the deposit mix reflected in its healthy 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, which has not only resulted in better asset quality, but has also led to sustainable improvement in NIMs. While the Gross and Net NPA ratios have improved by 110bp and 130bp, respectively to 3.2% and 0.8% as of FY2013 over FY2009, NIMs have improved from 2.6% in to 3.1%, over the same period. Consequently, RoAs and RoEs, which were at a low of 0.9% and 9.2%, respectively in FY2009, have improved to 1.5% and 14.6% in FY2013. Going forward, in our view, there is still scope for moderate upside to RoAs from improvement in risk adjusted NIMs and further to RoEs from improvement in operating and financial leverage. Moreover, in our view, the bank s substantial branch expansion from 955 branches at the end of 4QFY2008 to 3,100 branches by 4QFY2013, and strong capital adequacy, at 18.74% (TierI at 12.8%) has positioned it to grow at least few percentage points faster than the average industry growth. Asset quality trends remain healthy The bank s asset quality continues to show improvement, with a stable to declining trend in additions to gross as well as net NPAs. The reduction in risk profile of advances has expectedly resulted in a commensurate decline in credit costs. During FY2013, credit costs for the bank remained under check at 66bp, lower than the Managements guidance of 75bp. Going forward, the Management has April 29,

9 cautiously guided for credit costs of 75bp for FY2014. On the restructured front, despite the expected spike in 4QFY2013, the restructuring book remains comfortable at `5,315cr (1.8% of advances). PCR for the bank remained stable at 76.8%, as of 4QFY2013. Outlook and Valuation 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 three to four years and strong capital adequacy has positioned it to grow by at least a few percentage points higher than the average industry growth. Moreover, a lower risk balance sheet has driven down NPA provisioning costs. Further improvement in risk adjusted NIMs and higher growth is expected to drive a 15.5% CAGR in net profit over FY E and enable a RoE of 15.6% by FY2015E (with further upside from financial leverage). At the current market price, the bank s core banking business (after adjusting `158/share towards value of the subsidiaries) is trading at 1.71x FY2015E ABV (including subsidiaries, the stock is trading at 1.66x FY2015E ABV). We value the bank s subsidiaries at `158/share and the core bank at `1,195/share (2.1x FY2015E ABV). We recommend Buy rating on the stock with a target price of `1,352. Exhibit 17: SOTP valuation summary Particulars Target multiple Value/share (`) ICICI Bank 2.1x FY2015E ABV 1,195 Life Insurance 16.0x FY2015E NBP 77 General Insurance 10x FY2012 PAT 14 Others (Home Fin, AMC, VC, Securities Securities PD and Overseas subsidiaries) 67 SOTP value 1,352 Source: Angel Research Exhibit 18: Key assumptions Particulars (%) Earlier estimates Revised estimates FY2014 FY2015 FY2014 FY2015 Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage Ratio Source: Angel Research April 29,

10 Exhibit 19: Change in estimates FY2014E Particulars (` cr) Earlier Revised Var. (%) estimates estimates Earlier estimates FY2015E Revised estimates Var. (%) NII 16,449 16, ,530 19,472 (0.3) Noninterest income 9,922 9,232 (6.9) 12,087 10,858 (10.2) Operating income 26,371 25,705 (2.5) 31,618 30,330 (4.1) Operating expenses 10,623 10,287 (3.2) 12,880 12,015 (6.7) Preprov. profit 15,748 15,418 (2.1) 18,737 18,315 (2.3) Provisions & cont. 2,104 2,043 (2.9) 2,494 2,419 (3.0) PBT 13,644 13,375 (2.0) 16,243 15,896 (2.1) Prov. for taxes 3,951 3,699 (6.4) 5,091 4,793 (5.9) PAT 9,693 9,676 (0.2) 11,152 11,104 (0.4) Source: Angel Research Exhibit 20: Angel EPS forecast vs consensus Year (`) Angel forecast Bloomberg consensus Var. (%) FY2014E FY2015E (2.0) Source: Bloomberg, Angel Research Exhibit 21: P/ABV band 2,400 Price (`) 1x 1.5x 2x 2.5x 3x 2,100 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 Jul13 Nov13 Mar14 April 29,

11 Exhibit 22: P/E band 3,200 Price (`) 7x 17x 27x 37x 2,800 2,400 2,000 1,600 1, Apr05 Aug05 Dec05 Apr06 Aug06 Dec06 Apr07 Aug07 Dec07 Apr08 Aug08 Dec08 Apr09 Aug09 Dec09 Apr10 Aug10 Dec10 Apr11 Aug11 Dec11 Apr12 Aug12 Dec12 Apr13 Exhibit 23: ICICI Bank Premium/Discount to the Sensex (%) (20) (40) Premium/Discount to Sensex Avg. Historical Premium Apr06 Nov06 Jun07 Jan08 Aug08 Mar09 Oct09 May10 Dec10 Jul11 Feb12 Sep12 Apr13 Source: Bloomberg, Angel Research April 29,

12 Exhibit 24: Recommendation summary Company Reco. CMP (`) Tgt. price (`) Upside (%) FY2015E P/ABV (x) FY2015E Tgt. P/ABV (x) FY2015E P/E (x) FY201315E EPS CAGR (%) FY2015E RoA (%) FY2015E RoE (%) AxisBk Buy 1,474 1, FedBk Neutral HDFCBk Neutral ICICIBk* Buy 1,152 1, SIB Neutral YesBk Neutral AllBk Accumulate AndhBk Neutral BOB Buy BOI Accumulate BOM Neutral CanBk Accumulate CentBk Neutral CorpBk Buy DenaBk Accumulate IDBI# Neutral IndBk Buy IOB Buy J&KBk Neutral 1, (5.2) OBC Neutral PNB Accumulate SBI* Accumulate 2,272 2, SynBk Accumulate (3.5) UcoBk Neutral UnionBk Accumulate UtdBk Accumulate 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 nearly 3,100 branches, largest for a private sector bank, and over 10,000 ATMs. The bank has a large overseas presence (overseas loans comprise 25.2% of total loans). The bank also has marketleading subsidiaries in life insurance, general insurance and asset management. April 29,

13 Income statement (Standalone) Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15E Net Interest Income 8,114 9,017 10,734 13,866 16,472 19,472 YoY Growth (%) (10.8) Other Income 7,478 6,648 7,503 8,346 9,232 10,858 YoY Growth (%) (7.9) (11.1) Operating Income 15,592 15,665 18,237 22,212 25,705 30,330 YoY Growth (%) (9.4) Operating Expenses 5,860 6,617 7,850 9,013 10,287 12,015 YoY Growth (%) (16.8) Pre Provision Profit 9,732 9,048 10,386 13,199 15,418 18,315 YoY Growth (%) (4.3) (7.0) Prov. & Cont. 4,390 2,290 1,589 1,803 2,043 2,419 YoY Growth (%) (13.0) (47.8) (30.6) Profit Before Tax 5,342 6,758 8,797 11,397 13,375 15,896 YoY Growth (%) Prov. for Taxation 1,317 1,606 2,332 3,071 3,699 4,793 as a % of PBT PAT 4,025 5,151 6,465 8,325 9,676 11,104 YoY Growth (%) Balance sheet (Standalone) Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15E Share Capital 1,465 1,502 1,503 1,504 1,504 1,504 Equity 1,115 1,152 1,153 1,154 1,154 1,154 Preference Reserve & Surplus 50,503 53,939 59,252 65,552 71,881 79,123 Deposits 202, , , , , ,794 Growth (%) (7.5) Borrowings 63,447 72, , , , ,976 Tier 2 Capital 30,467 36,391 37,615 36,674 35,757 34,864 Other Liab. & Prov. 15,501 15,987 17,577 32,134 31,914 34,132 Total Liabilities 363, , , , , ,392 Cash Balances 27,514 20,907 20,461 19,053 23,307 18,801 Bank Balances 11,359 13,183 15,768 22,365 21,017 24,617 Investments 120, , , , , ,623 Advances 181, , , , , ,418 Growth (%) (17.0) Fixed Assets 3,213 4,744 4,615 4,647 5,168 5,872 Other Assets 19,215 16,347 19,515 29,087 33,349 39,061 Total Assets 363, , , , , ,392 Growth (%) (4.4) April 29,

14 Ratio analysis (Standalone) Y/E March FY10 FY11 FY12 FY13 FY14E FY15E 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 0.2 (0.1) (0.0) Int. Sens. Inc Other Inc Op. Inc Opex PBT Taxes RoA Leverage RoE April 29,

15 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%) April 29,