EUR 120.00 For Business Accounts Only

MOSL: Morning India (27/January/20): 1. ICICI Bank (Strong operating performance); 2. Oil & Gas; 3. UltraTech Cement; 4. JSW Steel; 5. Siemens; 6. Bank of Baroda; 7. Biocon; 8. Indian Bank; 9. DCB Bank; 10. Ze

Morning India (27/January/20):  1. ICICI Bank (Strong operating performance); 2. Oil & Gas; 3. UltraTech Cement; 4. JSW Steel; 5. Siemens; 6. Bank of Baroda; 7. Biocon; 8. Indian Bank; 9. DCB Bank; 10. Zensar Tech

 

Today’s top research idea

ICICI Bank: Strong operating performance; margins expand on improving asset mix

• Buoyed by a strong performance across metrics, ICICIBC reported its highest-ever quarterly profits (supported by Essar resolution) in 3QFY20. Loan growth in chosen business segments (Retail, Business Banking & SME) remained buoyant, while deposits growth moderated in the quarter. Slippages adjusted for the two corporate accounts were on track, while retail slippages rose due to seasonal weakness in agri segment.
• PAT increased 158% YoY to INR41.5b, led by strong NII and lower provisions. NII grew 24% YoY, led by ~13% YoY loan growth and 13bp QoQ margin expansion. Core PPoP was up 24% YoY.
• We expect the operating performance to remain healthy, while high PCR and limited exposure to stress names will keep credit cost under control. While its retail portfolio has been growing well, growth in business banking and SME is accelerating strongly and will further propel overall loan growth. Reiterate Buy with SOTP-based TP of INR650 (2.6x Sep'21E ABV).

Piping hot news

Government likely to soon allow Indian companies to list overseas

• The government is likely to soon decide on permitting Indian companies to list their equity shares overseas, according to an official. Apart from providing an additional fund raising avenue for the corporates looking to expand and boost their business activities, overseas listing of shares would also help in bringing more capital into the country.