About the Company:
ICICI Bank is the second largest private sector bank in terms of assets and market capitalization with a span of 5,275 branches and 15,589 ATM’s. The bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its group companies.
QoQ & YoYPerformance:
India’s second largest private sector bank has declared the results for the fourth quarter of financial year ending March 2019.
- Net Interest Income: NII is the difference between interest earned and interest expended that is the key factor for bank’s financial health status is increased by 3.77% QoQ while on YoY basis, there is an increase of 17.09% growth stating that interest earned is grown more than interest expanded.
- Net Profit after Tax: On QoQ basis, the bank has posted 73.21% down PAT due to rising provisions by Covid-19 while on YoY basis; there is an increase of 6.92%.
- Provisions and Contingencies: Bank's provisions and contingencies are landed to Rs 6,598.21 crores; are doubled on quarterly basis and increased 14.96% YoY.
- Net NPA: Net NPA ratios are fallen by 5.37% QoQ and 31.55% YoY.
- Dividend Payout: The Board of Directors recommended no dividend in light of Covid-19 pandemic as RBI has directed not to declare any dividend to conserve capital and support the financials.
As per Lokesh Sethia, SEBI Registered Research Analyst, the bank has posted a decent increase in NII numbers. Looking at the provisions and contingencies, the bank has posted 6,598.21 crores ( include 3,356.21 as provisions in light of Covid-19) as total provisions that could hurt the optimism of the investors. Retail loans grew by 16% this year while Total deposits increased by 18% year-on-year that shows the coonfidence of depositors over the bank. At a P/E multiple of 28.47, the stock is is trading at 337.70 levels. We advise you to 'BUY' for a target of Rs. 400 in one-year horizon.