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ICICI Bank: Grim reminder of 2008 - Views on News from Equitymaster
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ICICI Bank: Grim reminder of 2008
May 6, 2016

ICICI Bank declared the results for the financial year 2015-16 (FY16). The bank has reported 11.5% YoY growth in net interest income and 13% YoY fall in net profits for FY16. Here is our analysis of the results.

Performance summary
  • Net interest income grows by 11.5% in FY16 on the back of 12.3% YoY growth in advances while net interest margin (NIM) remains stable at 3.5%.
  • Cost to income ratio comes down from 37.7% in FY15 to 34.7% in FY16. This is the lowest amongst large private sector banks.
  • Capital adequacy ratio stood at 16.6% at the end of March 2016 with tier 1 at 13%.
  • Net NPAs rise to 2.7% of advances in FY16. The bank made additional one time provisions of Rs 36 bn in 4QFY16.
  • Bottomline falls by 13% YoY in FY16 largely due to higher provisioning.

    Standalone financial performance snapshot
    Rs (m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Interest income 127,384 134,819 5.8% 490,911 527,394 7.4%
    Interest Expense 76,590 80,774 5.5% 300,515 315,153 4.9%
    Net Interest Income 50,794 54,045 6.4% 190,396 212,241 11.5%
    NIM (%) 3.5% 3.5%
    Other Income 34,962 51,089 46.1% 121,761 153,230 25.8%
    Other Expense 31,073 34,059 9.6% 114,958 126,835 10.3%
    Provisions and contingencies 13,447 69,262 415.1% 38,999 116,678 199.2%
    Profit before tax 41,236 1,813 -95.6% 158,200 121,958 -22.9%
    Tax 12,015 -5,206 -143.3% 46,445 24,694 -46.8%
    Profit after tax / (loss) 29,221 7,019 -76.0% 111,755 97,264 -13.0%
    Net profit margin (%) 22.9% 5.2% 22.8% 18.4%
    No. of shares (m) 5,787.5
    Book value per share (Rs)* 154.0
    P/BV (x) 1.4

    * (Standalone book value as on 31st March 2016)

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