Broker call: ICICI Bank (Buy)


Target: 945

CMP: 710.05

We attended the virtual analyst day organized by ICICI Bank which presented the digital strategy of each business segment and data analysis are the main drivers to focus on the recognized strategy of a bank at BankTech. ICICI Bank reiterates its strategy “One bank, one ROE and provide 360 ​​degree solutions.

Management stressed that the focus is on data to maximize operating profits. He also pointed out that the culture of an organization is the key differentiator, as technology and digitization can be replicated in any organization (bank).

ICICI Bank has adopted the open architecture in the banking sector. The open architecture network is used for iMobile Pay, in digital partnerships and co-creation, in distribution ecosystems. The bank says home loans, personal loans, auto loans and overdrafts on FD increased 2.5x, 1.7x, 4.2x and 5.0x year-on-year, respectively.

The contribution of digital procurement was 92% in the second quarter of FY21, 96% in October and 100% from November. Digital procurement involves Insta, which is fully self-service loans, as well as digitally processed and physically assisted loans. About 26% of customers received credit cards through Insta Flow in October. We reiterate “Buy” with a target price of 945, valuing the parent company at 799 (2.3XP / ABV FY24) and we remain for the subsidiaries.


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