Buy ICICI Bank, target price Rs 907: Geojit Financial Services

Geojit Financial Services has buy call on ICICI Bank with a target price of Rs 907.0. The current market price of ICICI Bank is Rs 737.9. Time period given by analyst is a year when ICICI Bank price can reach defined target.

ICICI Bank, incorporated in the year 1994, is a banking company (having a market cap of Rs 513409.97 crore).

ICICI Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 42834.06 crore, up 7.45% from last quarter Total Income of Rs 39865.80 crore and down -1.68% from last year same quarter Total Incoe of Rs 43567.64 crore. The bank has reported net profit after tax of Rs 7718.94 crore in latest quarter.

Investment Rationale
ICICI Bank is India’s second largest private sector bank and has a network of 5,418 branches and 13,626 ATMs across India with ~51% of branches in semi-urban and rural areas. For Q4FY22 standalone, Net interest income grew 20.8% YoY with NIM expanding 16bps YoY to 4%. PAT jumped to Rs 7,109 crore (+13.3% QoQ, +59.4% YoY), due to lower provisioning this quarter of Rs 1,069 crore (-46.7% QoQ, -62.9% YoY).

Continued growth in deposits and advances, stable asset quality, and healthy provisions in place, coupled with further reductions in gross and net NPA levels to drive bank’s performance over the medium term, the brokerage said. It reiterated BUY rating on the stock with a target price of Rs 907 based on SOTP.