#ICICIBank: Interesting titbits from ICICI Q1FY23 ppt. Results were a few weeks ago.

1/ SIGNS OF RURAL STRESS ?? Rural loans grew JUST by 8.4% yy (does not even take care of Input inflation) for a Big bank growing fastest... vs Overall Domestic Loans grew 22% YY...
2/ RBI Rate hike of 40bps on May 4th shld have seen some impact on NIMs +vely in June Qtr given high share of External Benchmark (Repo Rate linked) Loans. Nims just +1bps QoQ (Retail/SME +24-33%yy vs low yielding Corp +14%yy shld hav also added to NIMs). Takes me to my next pt.
3/ Total Deposits declined QoQ (Rs10.64trn => 10.5trn) in a period of high Loan growth... the fight for deposits is gonna SPIKE BIG (HDFC merger effect yet 2 impact)..

P.S. FY YTD System Deposit growth weakens to 8%yy vs Credit growth a stellar @ 13-14% YY (WC Loans)
4/ No benefit of Digital sourcing ?? Pg 26: Digital sourcing for retail products continues to rise, but YET, Cost/Income Ratio increased (40%=>42%).. No benefit of Digital sourcing ?
5/ Asset Quality stellar: Pg 36: Rating-wise loan book - big improvement ... will hurt NIMs but also keep Provisioning costs low. This has been known for 2-3yrs now..
6/ Branch n/w has barely grown 4% Since March-20 .. will hurt Liability Franchise.

REFER back to point 3 where Deposit Growth Declined QoQ...
7/ DEBIT CARDS OUTSTANDING FLAT FOR 12 MONTHS !!! Pg 28: No of DEBIT cards has NOT Grown for 4 Qtrs ... How come ? Partially due to point 6
8/ Mortgages: Avg ticket has been stuck at just Rs25 lacs... thats really low.. with an LTV of 60%,... your still talking of a Rs35lac house..
9/ I Overheard: Contributions of top 150 cities to banking system CASA has increased from 55% to 75% in last two odd years. Rural folks apparently lived off their savings ... Refer back to point 1 on Rural
Disclosure: Am invested. This is NOT a stock reco.

Just a fun thread on how to Question ones CONVICTION with data points when everyone including myself are bullish on this bank.....

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