Re: {LONGTERMINVESTORS} ICICI Bank....thread
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
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Maintain 'buy' on ICICI Bank – TP Rs.1106 - Geojit BNP Paribas | |
| - Buy rating on ICICI Bank is maintained with a target price of Rs.1106 over one year. - The bank reported net interest income (NII) of Rs.3100 crore for 4QFY12. NII is up 23.7% yoy and better than market expectations. - NII increase is mainly driven by NIM (net interest margin) expansion. Domestic NIM expanded by 30bps to 3.3% qoq and overseas NIM increased to 1.5% from 1.4% qoq. NIM expansion seemed to have surprised the market. - Standalone net profit at Rs.1900 crore increased 31% yon. - Restructured assets jumped by Rs.1200 crore and % NNPA (Net non – performing assets) declined 10bps qoq. - Other income increased 35.85 yoy and surprised positively. Other income increase was driven by treasury gains and dividend income from subsidiaries. Dividend income from subsidiaries is expected to go up further in FY13, as more subsidiaries are expected to start paying dividend in the year. - During the quarter, advances increased moderately at 17.3% yoy. Retail loan growth was muted at 8% yoy, but domestic corporate loan growth was more comfortable at 26% yoy. - Consolidated net profit increased 59.1% yoy. ( This is after adjusting for one time third party motor losses of ICICI General at Rs.685 crore). - Improving NIM, return on assets (RoA) and return on equity (RoE) may lead to a re-rating of the stock to 2 multiple of expected book value for FY13 from 1.4 multiple of expected book value for FY13. - The stock is our top pick in the banking space and 'buy' rating is maintained with a TP of Rs.1106 over one year. |
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CA. Rajesh Desai
RAJESH DESAI
Boston-based State Street Corp is reportedly in talks with ICICI Bank to form a partnership in the securities custody business. The US-based financial services company is likely to buy an equity stake in a proposed joint venture, the report said. State Street, one of the largest in the business globally, with $21.8 trillion in assets under custody and administration, has been looking for a foothold in the Indian market for nearly a year.On Mon, Jul 2, 2012 at 9:44 AM, Mihir Desai <desaim...@gmail.com> wrote:
ICICI Bank sells its entire debt exposure in Kingfisher Airlines (KFA)
-ICICI Bank likely to have sold its debt to SREI
ICICI Bank spokesperson
-Have recovered the entire debt exposure of Rs 430 crore
-Currently does not have any debt exposure to the airline
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
REUTERS - ICICI Bank ICBK.N, India's No. 2 lender, expects to sustain the current level of net interest margin and sees an improvement in asset quality of the bank, Chief Executive Officer Chanda Kochhar said on Friday.
The bank posted on Friday a 36.3 percent jump in its fiscal first quarter net profit, its strongest growth in more than a year, helped by robust loan growth, high fee income and better asset quality.
Analysts, on average, had expected profit of 17.4 billion rupees, according to Thomson Reuters I/B/E/S.
(Reporting by Sumeet Chatterjee in MUMBAI; Editing by Sunil Nair)
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Reuters) - Loans for motorcycles are a thing of the past at ICICI Bank. So are credit cards for anyone other than existing customers.
India's second-biggest bank, whose aggressive growth made it an investor favourite before it was nearly brought to its knees during the financial crisis, has even become picky about lending to power and infrastructure projects, a core market.
With its once-sickly loan portfolio on the mend after several years of consolidation that saw it lose market share, ICICI is looking once again to grow faster than the industry - though more cautiously this time around.
"Growth for the sake of growth can get into asset quality problems," said N.S. Kannan, executive director and chief financial officer at India's largest private sector bank, with assets of $93 billion.
ICICI aims to grow its domestic loans by around a fifth this fiscal year, led by consumer loans and working capital, and will be especially cautious with project finance, Kannan said. In the last fiscal year, ICICI pared back overall loan growth to 17 from its initial target of 20 percent.
"For retail unsecured loans we have clearly tightened the filters. We are very careful in project finance and in identifying the projects that are worthy of financing," said Kannan, who assumed his role in 2009 when Chanda Kochhar was promoted to CEO.
Eric Mookherjee, fund manager at Shanti Gestion in Paris, said ICICI had little choice but to be much more cautious, which could hinder growth if India's flagging economy recovers from its most sluggish pace in nearly a decade.
"There's a lot of gloom about the Indian economy and if it turns out that India is not able to recover then ICICI is in good stead, but if the economy recovers they would have lost a little bit of leverage," said Mookherjee, who recently sold his ICICI stake and will re-enter at lower levels.
So far this year, ICICI shares are up more than a third - outpacing 28 percent growth in bank stocks - though they are still down nearly a quarter since the start of 2008, lagging rival HDFC Bank (HDBK.NS), India's No.2 private sector lender, which is up nearly 75 percent, and the banking index's 6 percent gain. Its current market value is close to $20 billion.
Still, ICICI's price-to-book ratio of 1.8 is the lowest among India's four largest private sector banks, and pales next to HDFC's 4.7. Of 48 analysts covering ICICI, 42 rate it a buy.
Kannan acknowledged it took time for some investors to come around to its less-aggressive mindset.
"Initially, one of the pushbacks we used to get from investors was that your DNA is a growth-oriented DNA: So, will you be able to deliver on the consolidation agenda?"
SCAR TISSUE
ICICI still bears the scars of the financial crisis, when bad loans surpassed 5 percent of total assets in the year to March 2010. It has pared that to about 3.5 percent, still far above HDFC Bank's, which are just under 1 percent.
After Lehman's 2008 collapse, worries about ICICI's overseas exposure prompted a near-50 percent one-month drop in its shares and led some depositors to queue at branches to withdraw cash, forcing it to issue text messages assuring that it was healthy and prompting the central bank to declare it well-capitalised.
In 2007, consumer lending accounted for more than 65 percent of ICICI's assets; it is almost half that now, although it wants to grow that to 35-40 percent over the next couple of years.
ICICI was involved in some of India's most notorious troubled corporate loans, including to Kingfisher Airlines (KING.NS), Air India and GTL Infrastructure (GTLI.NS), but has been more hard-nosed in restructuring terms than some of the state banks that lent alongside it.
It recently sold its remaining exposure to embattled Kingfisher at face value, although it took a hit after converting part of its debt to equity. Other Kingfisher creditors, mostly state banks, are still on the hook.
"You should give us some credit for our ability to resolve," Kannan said from his 10th-floor office in the sprawling Bandra-Kurla office park in suburban Mumbai. "Kingfisher, for example, we could resolve that asset by selling it off. In taking steps like talking to promoters (controlling shareholders), talking to lenders' consortium and protecting our interests, I think we have been above the curve."
ICICI expects asset quality to improve. Its restructured loans more than doubled last year to 47 billion rupees, but it does not expect to restructure much more.
Kannan also expects the overall group's return on equity - a measure of profitability - to grow a couple of percentage points to 15 percent by next March. Its return on equity is the lowest of India's top five banks, including Axis Bank (AXBK.NS) and HDFC, which have ROEs of 20.3 and 18.8 percent, respectively.
ICICI surprised investors two quarters running with robust profits and better asset quality. Its latest quarterly growth was its strongest in over a year.
"If we want, we can always grow faster, but growth should be subject to risk and profitability. That's quite embedded now," Kannan said.
(Editing by Tony Munroe and Ian Geoghegan)
ICICI Bank Ltd.JP Morgan
Credit costs were the main surprise in the June quarter. Net interest margin momentum was very strong. Fees were the area of disappointment.
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CA. Rajesh Desai
RAJESH DESAI
ICICI Bank, country’s largest public sector lender has inked pact with Ecobank Transnational Incorporated, Africa, by entering into a memorandum of understanding (MoU). Both the banks aim to extend banking services across their combined footprint in India and Africa. The deal is expected to leverage their combined expertise, strong local knowledge and corporate relationships to support Indo-African businesses.
Recently, bank has acquired around 5.36% stake in IL&FS Engineering and Construction Company, earlier known as Maytas Infra, through the CDR mechanism. ICICI, which already held 1.50% in the company, acquired the shares post restructuring through the CDR mechanism.
ICICI Bank cuts home and auto loan rates
-ICICI Bank cuts home loan rates by up to 100 basis points
-ICICI Bank cuts auto loan rates by upto 75 basis points
-Home loan rates for less than Rs 30 lakh at 10.25% versus 10.5%
-Home loans between Rs 30-Rs 70 lakh at 10.5% versus 11%
-Home loan above Rs 70 lakh at 10.5% versus 11.5%
-ICICI Bank's new rates applicable for 2 months till December 31
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CA Mihir Desai
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CA. Rajesh Desai
Rajesh Desai
CA. Rajesh Desai