ICICI Bank’s initiatives to de-risk loans have kept it in good standing and the impact on asset quality is likely to be manageable. An underrated aspect is that its operating profit grew by 19-20% in FY19-20 and 18% YoY in H1FY21. It has narrowed the gap with HDFC Bank and as As retail growth and corporate ecosystem banking pay off at normal credit cost, ICICI Bank can grow normalized earnings by 17-20%. CASA’s growth pick-up is key for ICICI Bank.
Jefferies believes ICICI Bank will be able to tap into retail lending demand and even deepen relationships with corporate clients through ecosystem banking initiatives: Reuters