ICICIBC Annual Report Shows Progress Towards Sustainable Growth
ICICIBC’s Annual Report highlights the bank’s progress towards sustainable growth. This is evident from its strong contingency buffers, robust underwriting and risk-monitoring mechanisms, and a healthy balance sheet.
Key Highlights
- Strong contingency buffers and robust underwriting and risk-monitoring mechanisms safeguard the company’s balance sheet.
- Retail franchise strengthened with 23% YoY growth (18% YoY growth in home loans).
- Robust traction in liabilities sustained.
- One of the highest proportions of Retail deposits, with a strong CASA mix.
- SME and Business Banking portfolio grew 19% YoY/35% YoY each in FY23, with its mix rising to 12% of loans (8% in FY18).
Outlook
Earnings growth is estimated to moderate to 17% CAGR over FY23-25, affected largely by a decline in margins and limited opex/credit cost levers.
Recommendation
BUY rating retained with SoTP-based TP of INR 1,150 (2.6x FY25E ABV).
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