ICICI Bank reported PAT of Rs 2,270 crore for Q1, in line with our estimate of Rs 2,320 crore (Street est of Rs 2,230 crore) ? a y-o-y growth of 25.3%.
Net interest income (NII) was 4.6% lower than expected, on lower-than-expected loan growth of 12.3% and net interest margin (NIM) remained stable q-o-q at 3.3%, with domestic NIM of 3.63%. Gross non-performing loans were marginally higher than expectation (GNPL ratio of 3.23%) with fresh delinquencies of R1,120 crore and bank-restructured loans of R830 crore. We maintain ?buy? and also retain the target price at Rs 1,390.
Blended loan growth was weaker than our expectation as the bank did not grow its international loan book on a $ basis. However, domestic book grew in line with industry average at 14% y-o-y, driven by strong 20% growth in domestic corporate loans.
Management indicated strong traction in mortgage and auto loans, with disbursals growing at 36% y-o-y and 17% y-o-y, respectively. Retail loans, excluding the buy-out portfolio, grew at 26% y-o-y. Mortgage loans grew 19.5% y-o-y, auto loans grew 22.1% yo-y and personal loans grew 91.3% y-o-y (14.5% q-o-q). CV loans fell 19.1% y-o-y as the bank continues to run down the buyout portfolio. Management guides for overall loan growth to be 2-3% higher than systemic domestic loan growth for FY14.