Thread by @jbotlagunta

📊ICICI BANK LTD (#ICICIBANK)

🏷CMP: 688, Market Cap: 4,77,987 Cr

🏦Business Analysis

🏷ICICI Bank Limited provides various banking products and financial services in India and Internationally.

A Thread 🧵

🌁HISTORY

🏷Incorporated in 5 January 1994 (28 Years ago)

🏷Founded as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to ICICI Bank. The parent company was later merged with the bank.

🏷Launched internet banking operations in 1998

🌁MARKET POSITION

🏷ICICI Bank is one of the largest private sector banks in India with standalone asset base of 12.3 lakh crore as on 31 March 2021

🌁MARKET SHARE

🏷Credit Card Transactions (As on Nov 21): 19.97%
🏷Equity AUM (As on Oct 21): 16%

🏷UPI Transaction (As on Sep 21): 15%
🏷Mutual Fund (As on Oct 21): 13%
🏷Housing Loan (As on Sep 21): 11.34%
🏷Mobile Banking Transactions (As on Nov 21): 11.04%
🏷Net Interest Income (NII - As on Sep 21): 9.37%
🏷Bank Advances (As on Sep 21): 7.52%

🏷Bank Deposits (As on Sep 21): 6.44%
🏷Debit Transactions (As on Nov 21): 6.35%

🌁DISTRIBUTION NETWORK

🏷Branches: 5,300
🏷No. of ATMs: 15,200
🏷30% branches are located in Metro cities

🌁MANAGEMENT

🏷Sandeep Bakhshi (MD & CEO) : 35 Years Experience (3.42 Yrs Tenure)

🏷CEO total compensation ($USD50.19K) is below average of similar size in Indian Market

🏷CEO compensation has been consistent with company performance

🌁ICICI SUBSIDIARIES & % OF HOLDINGS

🏷ICICI Bank UK: 100%
🏷ICICI Bank Canada: 100%
🏷ICICI Securities (Primary dealership limited): 100%
🏷ICICI Home Finance: 100%
🏷ICICI Venture: 100%
🏷ICICI Securities: 75%
🏷ICICI Lombard: 51.88%

🏷ICICI Prudential (Life Insurance): 51.37%
🏷ICICI Prudential (Asset Management): 51%

🌁INTERNATIONAL PRESENCE

🏷United States of America
🏷United Kingdom
🏷Germany
🏷Canada
🏷Singapore
🏷Bahrain
🏷Hong Kong
🏷China
🏷Dubai

🌁SHAREHOLDING PATTERN

🌁LOAN BREAK-UP

🏷Mortgage Loans: 55.4%
🏷Vehicle Loans: 13.3%
🏷Personal Loans: 11%
🏷Credit Cards: 4.1%
🏷Rural Loans: 15%

🌁LOAN BOOK

🏷Retail: 66.7%
🏷Domestic Corporate: 28.2%
🏷Overseas Book: 5.1%

🌁FINANCIALS

🏷Revenue Growth (9% CAGR)

60,940 Cr (March 2017) -> 89,163 Cr (March 2021), 92,707 Cr (TTM)

🏷Profit Growth (17% CAGR)

10,188 Cr (March 2017) -> 18,384 Cr (March 2021), 22,277 Cr (TTM)

🏷Loans & Advances (13% CAGR)

4,64,232 Cr (March 2017) -> 7,33,729 Cr (March 2021)

🏷CASA Ratio

49.90% (March 2017) -> 46.30% (March 2021)

🏷Net Interest Margin

3.25% (March 2017) -> 3.69% (March 2021)

🏷Capital Adequacy Ratio

17.39% (March 2017) -> 19.12% (March 2021)

🏷Gross NPA

9% (March 2017) -> 4.96% (March 2021)

🏷Net NPA

5% (March 2017) -> 1.14% (March 2021)

🌁QUARTERLY RESULTS (Q3 FY22)

🏷Revenue Growth: 3.56% (QoQ), 9.45% (YoY) - Average Growth

🏷Profit Growth: 7.30% (QoQ), 18.90% (YoY) - Good Growth

🏷NPA: 1.26% (Dec 20), 0.85% (Dec 21) - Low NPA is Good

🏷Strong loan growth led by retail advances, healthy growth in deposits

🌁STRENGTHS

🏷Strong Market Position
🏷Strong Distribution Network
🏷Geographical Presence
🏷Strong annual EPS Growth
🏷Improving Cash flow from operations
🏷Balance sheet strength is paramount for a bank
🏷Brokerages upgraded recommendation or target price

🌁WEAKNESS

🏷Strong Competition from other banks such as HDFC, Axis and Kotak Bank

🏷Management expects that the cost of deposits has bottomed out, however, on the lending side there may be some further pressure, going forward.

🏷Technicals are weak (Bearish)

🌁VALUATION

🏷Price to Earnings (PE) : 21.5 (Below it’s median PE 24.3)
🏷Price to book value (PB) : 3.03
🏷PEG Ratio : 1.71

🏷Trading 20% down from 52 Week High

🎖Attractive Valuation, offers best Risk-return.

🎖Valuation re-rating to continue