EUR 120.00 For Business Accounts Only

MOSL: Morning India (29/July/19): 1. ICICI Bank (Operating performance strong); 2. Bajaj Finance; 3. Maruti Suzuki; 4. Bajaj Auto; 5. JSW Steel; 6. Vedanta; 7. Havells India; 8. Punjab National Bank

MOrning India (29/July/19): 1. ICICI Bank (Operating performance strong); 2. Bajaj Finance; 3. Maruti Suzuki; 4. Bajaj Auto; 5. JSW Steel; 6. Vedanta; 7. Havells India; 8. Punjab National Bank

 

Today’s top research Idea

ICICI Bank: Operating performance strong; Provision coverage improves further

• Overall pool of stress loans is showing consistent decline and bulk of the NPA recognition is happening from the earlier disclosed BB and below pool . Strong capitalization (Tier-1 of ~15.1%), significant improvement in granularity of book and sustained improvement in liability profile (helping to de-risk business) are the key positives.
• Retail business matrix remain healthy with a) Average CASA ratio of 43.4% b) Contribution to fees at 72% c) Higher share of secured loans and continued healthy growth. ICICIBC has delivered steady operating performance and is set to see earnings normalization. With asset quality stabilizing, credit cost will moderate meaningfully in FY20E/21E, thus, boosting return ratios.
• For FY20/FY21 we expect the bank to deliver loan CAGR of 17% over FY19-21E, and estimate core RoA/RoE to improve to 1.5%/15.5%. ICICI remains our top pick in the sector.

Piping hot news

Tax boost for EVs, GST slashed to 5% from 12%

In a landmark move by the government, the GST Council has brought down the GST rate on electric vehicles (EVs) to 5 per cent from 12 per cent. The move has come as a shot in the arm for the auto industry which has been pushing for a tax boost to promote the sale of EVs. The Society of Manufacturers of Electric Vehicles (SMEV) has welcomed the move to slash the GST.