Team, any view on this company. Private sector banks are looking in a good shape. Bank nifty has not gone below 34k and is holding strong. Some of the key pillars like axis , kotak and hdfc are forming up a good foundation.
Would we still call icici bank as a contrarian pick?
Really good details on ICICI bank. Please check all the images ( total - 6 )
because banks are valued based on pb ratio. pe is not that important
Good results from ICICI bank
Disc : holding ICICI bank and ICICI Securities
Can anyone please tell me how to calculate total equity of a bank, as the accounting structure for a bank is different from other businesses I am having a hard time calculating return on equity?
So the share capital and reserves added give us the total equity?
yes that’s how it is
Results out
Icici bank big block deal information - Around 100 crore deal . So bullish sector continues .
I was going through the results presentation of ICICI Bank https://www.icicibank.com/managed-assets/docs/investor/quarterly-financial-results/2023/2022_10_Q2-2023_Investor_presentation.pdf. There is a section on digital initiatives like iMobilePay, InstaBiz, SmartWire, APIs, Trade an Supply chain solutions, etc. I have a retail account and the degree of automation and online services is quite impressive, though I have not used any other Indian bank offering. On ICICI, even the most obscure things like Transfer. Instruction For Delivery. slips for Demat transfers can be online. Their merchant and SME offerings look quite competitive.
Can anyone comment on how much this is a differentiator? Do all banks do something similar?
Short Highlights from ICICI bank’s Q4 results -
Core Operating profits up 36 pc at 13,866 cr
Q4 Provisions at 1619 vs 1069 cr
FY 23 provisions at 6666 cr vs 8641 cr
Loan growth at 20.5 pc yoy
Deposit growth at 9.3 pc yoy ( CASA up 7.5 pc, Term Deposits up 17.1 pc )
Net NPAs at 0.48 pc vs 0.76 pc - huge improvement
Gross NPAs at 2.81 pc vs 3.6 pc - huge improvement
PCR at 82.8 vs 79.2 pc
Net additions to Gross NPAs in Q4 at 14 cr !!
Most of the provisions in Q4 were contingency provisions
Total Contingency prov at 13100 cr !!
NII at 17,667 cr vs 12,605 cr
Non Interest income at 5127 vs 4608 cr
Dividend income at 4830 vs 4366 cr
PAT at 9122 vs 7019 cr NIMs at 4.9 vs 4.0 pc
Cost/Income at 39.2 vs 40.6 RoA at 2.37 vs 2.11
Loan growth - Retail- 23 pc Rural- 14 pc Business Bank- 35 pc
SME- 19 pc
Corporates- 22 pc
Total provisions held as a percentage of Advances - 2.2 pc vs 2.1 pc in Mar 22 ( heading the HDFC way )
Loans outstanding break up -
Retail - 54 pc
Rural - 8 pc
Business banking - 7 pc
Corporate - 22 pc
SME - 5 pc
Overseas - 4 pc
Disc : holding
Results, IMO are very good
I agree with ICICI Bank observations.
Response time has reduced in the past 2-3 years. Hope that, New management do not get involved in fraudulent activities like previous management.
Gross NPA have always remained the concern for this bank for the past 15 years.
If the new management can remain more cautious in lending approach and Customer centric approach (not calling customer every day when not required!!) remains, this bank may turn into a good investment.
Disc : No investment.
ICICI Bank’s net interest margin for the quarter is 4.43 percent vs 4.65% (yoy) - For Short Term Investor
The management has guided that margins for FY24 will remain similar to the previous financial year. The bank ended FY23 with 4.48 percent as its net interest margin - For Long Term Investor
