ICICI BANK
Reco price: Rs 940,
Target price: Rs 1,243
A 16.8 per cent growth in net profit to Rs 1,026 crore was primarily driven by a sharp drop in provisions. Net interest income was flat as advances contracted by nearly 7 per cent. The reported net interest margin of 2.5 per cent indicates an expansion of 10 basis points on a y-o-y basis. Non-interest income witnessed a decline of 19.6 per cent y-o-y to Rs 1,680.5 crore, driven by a sharp drop of 85.4 per cent in the treasury gains that outweighed the pick-up in the fee income. The fee income growth was driven by the corporate segment as the retail segment continued to see weakness due to the bank's lower focus on the credit card segment. ICICI Bank trades at 15.2x its FY2012 estimated earnings per share. Maintain Buy
—Sharekhan
