EUR 120.00 For Business Accounts Only

MOSL: MOrning India (25/July/22): 1. ICICI Bank (Invest and Admire – setting industry benchmarks); 2. Reliance Industries; 3. Infosys; 4. Kotak Mahindra Bank; 5. UltraTech Cement; 6. JSW Steel

Today’s top research idea

ICICI Bank: Invest and Admire - setting industry benchmarks

• ICICIBC reported a robust operating performance, driven by a combination of impressive core PPoP performance and controlled provisions, despite the creation of contingent provisions, underpinned by pristine asset quality. A stable mix of high-yielding portfolio (Retail/Business Banking) and a low-cost liability franchise is fueling steady NII growth.
• The bank is seeing a strong recovery in business trends across key segments. Asset quality trends remain steady, while PCR remains one of the best in the industry ~80%. The additional COVID-19 provision buffer (90bp of loans) renders further comfort.
• Ahead of this new growth cycle, the bank is already positioned well with superior margins, strong RoE/asset quality and robust capitalisation levels. The stock return will be a function of earnings growth and re-rating over the coming years and ICICI Bank has all the ingredients in place to take over the pole position in the Indian Banking space. ICICIBC remains our top pick in the sector with TP of INR1,050.

Piping hot news

Carlyle, Advent close in on $1 billion Yes Bank stake

Yes Bank’s plan to bring Carlyle and Advent on board as equity investors for about $1 billion has gathered pace, following the proposed sale of the lender’s stressed assets to JC Flowers Asset Reconstruction Company and the constitution of a new board, said people in the know.