ICICI Bank

1QFY2011 Result Update | Banking
August 2, 2010

ICICI Bank BUY
CMP Rs940
Performance Highlights Target Price Rs1,163

Particulars (Rs cr) 1QFY11 4QFY10 % chg (qoq) 1QFY10 % chg (yoy) Investment Period 12 Months
Net interest income 1,991 2,035 (2.2) 1,985 0.3
Pre-prov. profit Stock Info
2,188 2,399 (8.8) 2,529 (13.5)
PAT 1,026 1,006 2.0 878 16.8 Sector Banking
Source: Company, Angel Research Market Cap (Rs cr) 1,04,794
Beta 1.5
ICICI Bank’s net profit increased 16.8% yoy, which was in line with our estimates.
52 Week High / Low 1,010/691
The key positive of the results was a sharp declining trend in slippages from retail
Avg. Daily Volume 9,14,940
loans for the fifth consecutive quarter and a huge reduction in NPA provisioning
Face Value (Rs) 10
burden. We maintain a Buy on the stock.
BSE Sensex 18,081
Transformation done, time to grow: The bank’s advances increased by 1.8% qoq
Nifty 5,432
(however, declined by 6.9% yoy) to Rs1,84,378cr, while total deposits declined
Reuters Code ICBK.BO
marginally by 0.5% qoq (fell by 4.4% yoy) to Rs2,00,913cr during 1QFY2011.
The drop in advances was attributed to the repayments from retail, and short-term Bloomberg Code ICICIBC@IN

corporate loans. As a result, NII growth remained muted at 0.3% yoy. Slippages
from retail loans declined from Rs1,300cr in 1QFY2010 to Rs500cr in 4QFY2010
Shareholding Pattern (%)
and Rs200cr in 1QFY2011. The provision coverage ratio (as per RBI guidelines)
Promoters -
improved to 64.8% in 1QFY2011 (59.5% in 4QFY2010). The bank’s restructured
MF / Banks / Indian Fls 26.2
loans stood at Rs3,737cr, down 29.6% sequentially.
FII / NRIs / OCBs 67.5
Outlook and Valuation: The result of the bank’s strategies over the last eighteen
Indian Public / Others 6.3
months has been a substantially improved ratio of branches to networth that will
ensure a far more favourable cost of funds. Moreover, a lower risk balance sheet
is expected to drive down NPA provisioning costs that will enable RoE of 15.5% by
Abs. (%) 3m 1yr 3yr
FY2012E (with further upside from financial leverage). At the CMP, the bank’s
Sensex 3.0 15.4 20.7
core banking business (after adjusting Rs307 per share towards value of the
ICICI Bank (1.1) 23.8 4.4
subsidiaries) is trading at 1.7x FY2012E ABV of Rs381 (including subsidiaries, the
stock is trading at 1.8x FY2012E ABV of Rs520). We value the bank’s subsidiaries
at Rs307 per share and the core Bank at Rs856 (2.25x FY2012E ABV). We
maintain a Buy on the stock, with a Target Price of Rs1,163, implying an upside of
23.8% from current levels.

Key Financials
Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E
NII 9,092 8,114 8,659 10,835 Vaibhav Agrawal
% chg 10.9 (10.8) 6.7 25.1 022 – 4040 3800 Ext: 333
Net Profit 3,423 4,024 5,028 6,906 vaibhav.agrawal@angeltrade.com
% chg (17.7) 17.5 24.9 37.4
NIM (%) 2.6 2.4 2.4 2.5 Amit Rane
022 – 4040 3800 Ext: 326
EPS (Rs) 30.7 36.1 45.1 61.9
amitn.rane@angeltrade.com
P/E (x) 30.6 26.0 20.8 15.2
P/ABV (x) 2.2 2.1 1.9 1.8 Shrinivas Bhutda
RoA (%) 0.9 1.0 1.2 1.4 022 – 4040 3800 Ext: 316
RoE (%) 9.2 9.7 11.7 15.5 shrinivas.bhutda@angeltrade.com
Source: Company, Angel Research

Please refer to important disclosures at the end of this report 1

ICICI Bank | 1QFY2011 Result Update

Exhibit 1: 1QFY2011 performance
% chg % chg
Particulars (Rs cr) 1QFY2011 4QFY2010 1QFY2010
(qoq) (yoy)
Interest earned 5,813 5,827 (0.2) 7,133 (18.5)
Interest expenses 3,821 3,792 0.8 5,148 (25.8)
Net interest income 1,991 2,035 (2.2) 1,985 0.3
Non-interest income 1,681 1,891 (11.1) 2,090 (19.6)
Total income 3,672 3,926 (6.5) 4,075 (9.9)
Operating expenses 1,483 1,527 (2.8) 1,546 (4.0)
Pre-prov. profit 2,188 2,399 (8.8) 2,529 (13.5)
Provisions & cont. 798 990 (19.4) 1,324 (39.7)
PBT 1,390 1,409 (1.3) 1,205 15.3
Prov. for taxes 364 404 (9.7) 327 11.3
PAT 1,026 1,006 2.0 878 16.8
EPS (Rs) 9.2 9.0 2.0 7.9 16.6
Cost-to-income ratio (%) 40.4 38.9 37.9
Effective tax rate (%) 26.2 28.6 27.1
Net NPA (%) 1.9 2.1 2.3

Exhibit 2: 1QFY2011 Actual v/s Angel estimates
Particulars (Rs cr) Actual Estimates Var. (%)
Net interest income 1,991 1,986 0.3
Non-interest income 1,681 1,813 (7.3)
Total income 3,672 3,798 (3.3)
Operating expenses 1,483 1,530 (3.0)
Pre-prov. profit 2,188 2,269 (3.5)
Provisions & cont. 798 820 (2.7)
PBT 1,390 1,448 (4.0)
Prov. for taxes 364 413 (11.8)
PAT 1,026 1,036 (0.9)

August 2, 2010 2


Advances de-grow yoy

The advances increased by 1.8% qoq (however, declined by 6.9% yoy) to
Rs1,84,378cr, while the total deposits of the bank declined marginally by 0.5%
qoq (fell by 4.4% yoy) to Rs2,00,913cr during 1QFY2011. The drop in advances
was in line with expectations, even after factoring in the strong uptick in systemic
credit demand during 1QFY2011. The drop in the advances book was attributed
to the repayments from retail, and short-term corporate loans. Partly due to this,
NII growth remained muted at 0.3% yoy.

However, an important reason for the bank’s lack of NIM improvement on a yoy
basis in spite of substantially improved CASA ratio is the lower risk profile of the
bank’s loan book. We expect this reduction in risk (and consequent lower yield on
advances), to result in a 72bp decline in NPA provisioning costs by 2012E
eventually reflecting in an improvement in RoA from 1.0% to 1.4% over FY10-12E,
commensurate with the improvement in CASA ratio.

Exhibit 3: Trend in advances and deposits
Advances Deposits Credit-Deposit ratio (RHS)
(Rs cr) (%)
250,000 105
200,000 100
150,000 95
100,000 90
50,000 85
- 80
1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

Source: Company, Angel Research 1QFY11

Exhibit 4: Advances break-up (1QFY2011)
Rural
9%

Retail
41%
Overseas
26%

Corporate
SME
20%
4%


August 2, 2010 3


Exhibit 5: Breakup of Retail advances (1QFY2011)

Credit Cards Other
5% 2%
Personal
5%

Vehicle
26%
Home
62%


Non-interest income growth low due to loan book de-growth

Non-interest income was down 11.1% qoq and 19.6% yoy to Rs1,681cr on
account of 77.2% yoy decline in treasury gains at Rs163cr (from Rs714cr in
1QFY2010 and Rs196cr in 4QFY2010). Core fee income grew by 7.1% yoy to
Rs1,413cr. We expect non-interest income, excluding treasury, to grow in line with
loan growth during FY2011E.

Asset quality stabilising; lower provisioning cost, going forward

The bank’s asset quality showed signs of stabilising, with a sharp declining trend in
slippages in retail loans, which fell from Rs1,300cr in 1QFY2010 to Rs500cr in
4QFY2010 and Rs200cr in 1QFY2011. The absolute amount of gross NPAs
increased by 3.7% sequentially to Rs9,829cr. The bank’s gross NPA ratio was
stable sequentially at 5.1% (as against 5.1% in 4QFY2010 and 4.6% in
1QFY2010), mainly on account of the ongoing contraction in the loan book.

The provision coverage ratio (as per RBI guidelines) improved to 64.8% in
1QFY2011 (59.5% in 4QFY2010). The RBI has extended the deadline to meet the
coverage ratio requirement of 70% from September 30, 2010 to March 31, 2011.
The bank’s restructured loans stood at Rs3,737cr, down 29.6% sequentially. It may
be noted here that cummulative restructuring of the bank is one of the lowest in the
sector at 2.0% of total loans and 7.1% of net worth, indicating relatively
comfortable asset quality, going forward. As a result, we have factored in NPA
provisions to decline by 37.7% in FY2011E and 16.3% in FY2012E.

August 2, 2010 4


Exhibit 6: Trend in asset quality
Gross NPAs Net NPAs Coverage ratio (RHS)
(Rs cr) (%)
12,000 80

9,000 60

6,000 40

3,000 20

- -

1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11
Source: Company, Angel Research, Note: NPA coverage as per RBI guidelines

Operating expenses under control

Driven by a 15.9% yoy fall in other operating expenses, the total operating
expenses declined by 4.0% yoy to Rs1,484cr. However, the cost-to-income ratio
deteriorated to 40.4% in 1QFY2011 as compared to 38.9% in 4QFY2010 and
37.9% in 1QFY2010, due to muted operating performance.

Exhibit 7: Trend in productivity
(%) Cost-to-Income ratio
60.0 52.8
43.2 43.5
45.0 38.5 37.9 38.9 40.4
36.9 36.5

30.0

15.0

-
1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11


Strong capital adequacy

Driven by its large net worth, capital adequacy continued to be strong at 20.2%,
comprising substantial Tier-1 component of 14.0%. We believe that this positions
the bank well for the imminent improvement in credit growth, as the GDP outlook
continues to improve.

August 2, 2010 5


Exhibit 8: Best-in-class capital adequacy
(%) Tier-I CAR Tier-II CAR
25.0

20.0
5.2 5.4 6.2
15.0 4.3 4.4
3.7
13.1 13.3 14.2 14.0 14.0
10.0 11.8
5.0

-

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

Overview of overseas banking subsidiaries

ICICI Bank, Canada’s PAT fell to CAD 6.5mn in 1QFY2011 from CAD 8.9mn in
1QFY2010. ICICI Bank Canada’s capital position continued to be strong, with a
capital adequacy ratio of 22.5% as at 1QFY2011.

Overview of insurance subsidiaries

ICICI Life registered a loss after tax of Rs116cr in 1QFY2011 primarily due to
deferring the accounting for a surplus of Rs235cr in the non-participating
policyholders’ funds, which would be transferred at the end of FY2011 based on
appointed actuary’s recommendation. If this surplus had been transferred in
1QFY2011, profit after tax of ICICI Life for the quarter would have been Rs119cr.
ICICI Life’s new business annualised premium equivalent (APE) in 1QFY2011 was
at Rs1,182cr (Rs622cr). Renewal premium in 1QFY2011 was at Rs1,988cr. ICICI
Life’s unaudited new business profit (NBP) stood at Rs225cr, up 91% yoy compared
to Rs118cr in 1QFY2010. AUMs grew 38% to Rs59,547cr (Rs43,035cr) in
1QFY2011.

ICICI General’s premium income grew 27% yoy in 1QFY2011 to Rs1,118cr. ICICI
General’s profit after tax fell to Rs33cr (Rs38cr) in 1QFY2011.

Overview of the Securities and AMC business

ICICI Prudential Asset Management Company’s PAT increased 68% yoy to Rs32cr
(Rs19cr) in 1QFY2011. ICICI Securities’ PAT moved up 79% to Rs25cr (Rs14cr) in
1QFY2011.

August 2, 2010 6


Investment Arguments

Well-positioned to garner strong market share gains in CASA
deposits
In our view, the bank’s substantial branch expansion from 955 branches at the
end of 3QFY2008 to 2,016 branches by 1QFY2011 as well as strong capital
adequacy at 20.2% (Tier-I at 14.0%) have positioned it to gain market share that
will contribute to substantial core business growth as the macro environment
continues to improve. In fact, the bank has once again started gaining market
share in savings accounts. During FY2010, the bank improved its market share of
savings deposits by 10bp over FY2009 levels, capturing a substantial 5.4%
incremental market share.
Improved deposit mix to reflect in NIMs sustainability
The Bank’s strategic transformation is expected to drive significantly better Balance
Sheet and Earnings quality, taking RoEs from 9.7% in FY2010 to 15.5% in
FY2012E. The distinguishing feature of the bank’s performance in FY2010 was the
improvement in CASA ratio to 42.1% (transformative considering that the ratio was
as low as 22% at the end of FY2007 and 29% even as recently as FY2009). In light
of this change in the liability mix, even in a rising interest rate scenario, we expect
the bank’s NIMs to sustain at 2.4-2.5% levels over FY2011-12E (2.4% in FY2010).
Apart from the paradigm shift in the deposit mix reflected in its 42% CASA ratio,
the bank has also largely exited unattractive business segments such as small-ticket
personal loans in the domestic segment and most non-India related exposures in
its international business, focusing again on replacing wholesale funds with retail
deposits in the international subsidiaries as well.
Worst of asset quality issues over
The asset quality of the bank showed signs of stabilising, with a sharp declining
trend in slippages in retail loans, which fell from Rs1,300cr in 1QFY2010 to
Rs500cr in 4QFY2010 and Rs200cr in 1QFY2011. The bank’s restructured loans
stood at Rs3,737cr, down 29.6% sequentially. As a result, we have factored in NPA
provisions to decline by 37.7% in FY2011E and 16.3% in FY2012E.
Valuations attractive
We have a positive view on ICICI Bank, given its market-leading businesses across
the financial services spectrum. Moreover, we believe that the bank is decisively
executing a credible strategy of consolidation that has resulted in an improved
deposit and loan mix, and should drive improved operating metrics over the
medium term. The result of the bank’s strategies over the last eighteen months has
been a substantially improved ratio of branches to networth that will ensure a far
more favourable cost of funds. Moreover, a lower risk balance sheet is expected to
drive down NPA provisioning costs that will enable RoE of 15.5% by FY2012E (with
further upside from financial leverage). At the CMP, the bank’s core banking
business (after adjusting Rs307 per share towards value of the subsidiaries) is
trading at 1.7x FY2012E ABV of Rs381 (including subsidiaries, the stock is trading
at 1.8x FY2012E ABV of Rs520). We value the bank’s subsidiaries at Rs307 per
share and the core Bank at Rs856 (2.25x FY2012E ABV). We maintain a Buy on
the stock, with a Target Price of Rs1,163, implying an upside of 23.8% from
current levels.

August 2, 2010 7


Exhibit 9: Key assumptions
Earlier estimates Revised estimates
Particulars (%)
FY2011E FY2012E FY2011E FY2012E
Credit growth 20.0 25.0 15.0 25.0
Deposit growth 20.0 24.0 20.0 24.0
CASA ratio 44.3 44.9 44.3 44.9
NIM 2.6 2.6 2.4 2.5
Other income growth 18.1 21.6 7.2 26.8
Growth in staff expenses 24.3 30.5 15.0 30.5
Growth in other expenses 24.3 30.5 15.0 30.5
Slippages 1.2 0.8 1.5 1.1
Coverage ratio 77.3 76.2 76.7 83.6
Treasury gain/(loss) (% of investments) 0.7 0.4 0.7 0.4

Exhibit 10: Change in estimates
FY2011E FY2012E
Particulars (Rs cr) Earlier Revised Earlier Revised
% chg % chg
estimates estimates estimates estimates
NII 9,256 8,659 (6.4) 11,335 10,835 (4.4)
Non-interest income 8,482 8,013 (5.5) 10,377 10,157 (2.1)
Total income 17,738 16,673 (6.0) 21,711 20,992 (3.3)
Operating expenses 7,284 6,739 (7.5) 9,504 8,792 (7.5)
Pre-prov. profit 10,454 9,934 (5.0) 12,208 12,199 (0.1)
Provisions & cont. 3,566 2,933 (17.8) 2,826 2,543 (10.0)
PBT 6,887 7,001 1.6 9,382 9,656 2.9
Prov. for taxes 1,939 1,973 1.8 2,668 2,751 3.1
PAT 4,948 5,028 1.6 6,713 6,906 2.9

Exhibit 11: P/ABV band
Price 1.00x 1.50x 2.00x 2.50x 3.00x
(Rs)
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-
Aug-05

Aug-10
Jun-06
Jul-03

Jul-08
Dec-03
May-04

Jan-06

Dec-08
May-09

Jan-11
Apr-02

Apr-07
Oct-04

Oct-09
Sep-02
Feb-03

Mar-05

Sep-07
Feb-08

Mar-10
Nov-06


August 2, 2010 8


Exhibit 12: ICICI Bank - P/E Band
(Rs)
Price 7x 17x 27x 37x
1,800
1,500
1,200
900
600
300
0

Aug-04
Jun-03

Jun-10
Jan-04

May-06

Jul-07
Dec-06
Apr-02

Apr-09
Oct-05
Mar-05

Feb-08

Sep-08
Nov-02

Nov-09

Exhibit 13: Premium/Discount to Sensex - ICICI Bank
(%)
Premium/Discount to Sensex Avg. Historical Premium
100
80
60
40
20
0
(20)
(40)
Jul-06

Jul-07

Jul-08

Jul-09

Jul-10
Jan-07

Jan-08

Jan-09

Jan-10
Apr-07

Apr-08

Apr-09

Apr-10
Mar-06

Oct-06

Oct-07

Oct-08

Oct-09

Exhibit 14: Angel EPS forecast v/s consensus
Year Angel Forecast Bloomberg Consensus Var.(%)
FY2011E 45.1 44.0 (2.4)
FY2012E 61.9 56.0 (10.5)
Source: Company, Angel Research, Bloomberg

August 2, 2010 9


Exhibit 15: Branches to Networth


Exhibit 16: Recommendation summary
CMP Tgt. price Upside FY2012E FY2012E FY2012E FY10-12E FY2012E FY2012E
Company Reco
(Rs) (Rs) (%) P/ABV (x) Tgt P/ABV (x) P/E (x) CAGR in EPS (%) RoA (%) RoE (%)
AXISBK Buy 1,351 1,688 24.9 2.6 3.2 13.4 27.4 1.6 20.5
HDFCBK Buy 2,136 2,514 17.7 3.4 4.0 17.8 36.5 1.7 20.6
ICICIBK Buy 940 1,163 23.8 1.8 2.2 15.2 31.0 1.4 15.5
YesBk Neutral 305 - - 2.4 - 15.4 18.7 1.3 17.1
SIB Neutral 193 - - 1.1 - 6.8 17.1 1.0 17.8
FedBk Accumulate 349 375 7.6 1.0 1.1 7.5 30.7 1.4 14.4
SBI Accumulate 2,581 2,821 9.3 1.4 1.8 11.3 25.7 1.0 19.5
BOI Neutral 439 - - 1.4 - 8.6 24.3 0.8 17.3
CorpBk Accumulate 574 607 5.7 1.0 1.1 5.5 13.4 1.0 20.5
IndBk Neutral 228 - - 1.1 - 5.6 7.6 1.3 21.0
DenaBk Accumulate 102 114 11.7 0.9 1.0 4.6 12.1 0.9 18.9
IOB Accumulate 115 132 14.3 0.8 0.9 5.8 23.8 0.6 14.6
OBC Neutral 412 - - 1.1 - 6.2 21.6 0.9 18.3
PNB Reduce 1,118 948 (15.2) 1.5 1.3 7.5 9.5 1.2 22.0
UnionBk Neutral 323 - - 1.3 - 5.7 17.1 1.1 24.1
UcoBk Buy 97 115 19.1 0.8 1.0 4.2 12.0 0.8 23.8

August 2, 2010 10


Income statement
Y/E March (Rs cr) FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Net Interest Income 4,187 6,636 8,202 9,092 8,114 8,659 10,835
- YoY Growth (%) 47.5 58.5 23.6 10.9 (10.8) 6.7 25.1
Other Income 5,037 6,963 8,879 7,783 7,477 8,013 10,157
- YoY Growth (%) 47.4 38.2 27.5 (12.3) (3.9) 7.2 26.8
Operating Income 9,224 13,599 17,081 16,875 15,591 16,673 20,992
- YoY Growth (%) 47.5 47.4 25.6 (1.2) (7.6) 6.9 25.9
Operating Expenses 4,480 6,691 8,154 7,045 5,860 6,739 8,792
- YoY Growth (%) 35.8 49.4 21.9 (13.6) (16.8) 15.0 30.5
Pre - Provision Profit 4,744 6,908 8,926 9,830 9,731 9,934 12,199
- YoY Growth (%) 60.5 45.6 29.2 10.1 (1.0) 2.1 22.8
Prov. & Cont. 1,651 3,263 3,870 5,048 4,390 2,933 2,543
- YoY Growth (%) 282.2 97.7 18.6 30.4 (13.0) (33.2) (13.3)
Profit Before Tax 3,094 3,645 5,056 4,782 5,341 7,001 9,656
- YoY Growth (%) 22.6 17.8 38.7 (5.4) 11.7 31.1 37.9
Prov. for Taxation 554 535 898 1,359 1,317 1,973 2,751
- as a % of PBT 17.9 14.7 17.8 28.4 24.7 28.2 28.5
PAT 2,540 3,110 4,158 3,423 4,024 5,028 6,906
- YoY Growth (%) 26.7 22.4 33.7 (17.7) 17.5 24.9 37.4

Balance sheet
Y/E March (Rs cr) FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Share Capital 1,240 1,249 1,463 1,463 1,465 1,465 1,465
- Equity 890 899 1,113 1,113 1,115 1,115 1,115
- Preference 350 350 350 350 350 350 350
Reserves & Surplus 21,316 23,414 45,358 48,420 50,503 53,168 56,833
Deposits 165,083 230,510 244,431 218,348 202,017 242,420 300,601
- Growth (%) 65.4 39.6 6.0 (10.7) (7.5) 20.0 24.0
Borrowings 38,522 51,256 65,648 67,324 60,947 70,855 85,126
Tier 2 Capital 10,144 19,405 20,750 25,482 32,967 37,912 47,390
Other Liab & Prov. 15,084 18,824 22,145 18,265 15,501 21,802 28,262
Total Liabilities 251,389 344,658 399,795 379,301 363,400 427,621 519,676
Cash balances 8,934 18,707 29,378 17,536 27,514 16,969 22,545
Bank balances 8,106 18,414 8,664 12,430 11,359 13,399 16,336
Investments 71,547 91,258 111,454 103,058 120,893 162,526 188,332
Advances 146,163 195,866 225,616 218,311 181,206 208,386 260,483
- Growth (%) 59.9 34.0 15.2 (3.2) (17.0) 15.0 25.0
Fixed Assets 3,981 3,923 4,109 3,802 3,213 3,676 4,347
Other Assets 12,658 16,490 20,575 24,164 19,215 22,665 27,633
Total Assets 251,389 344,658 399,795 379,301 363,400 427,621 519,676
- Growth (%) 50.1 37.0 14.9 (6.3) (4.4) 18.0 21.9

August 2, 2010 11


Ratio analysis
Y/E March FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Profitability ratios (%)
NIMs 2.2 2.4 2.4 2.6 2.4 2.4 2.5
Cost to Income Ratio 48.6 49.2 47.7 41.7 37.6 40.4 41.9
RoA 1.2 1.0 0.8 0.9 1.0 1.2 1.4
RoE 14.6 13.4 10.3 9.2 9.7 11.7 15.5
B/S ratios (%)
CASA Ratio 22.7 21.8 26.1 28.7 41.7 44.3 44.9
Credit/Deposit Ratio 88.5 85.0 92.3 100.0 89.7 86.0 86.7
CAR 13.4 11.7 14.0 14.5 17.9 14.6 14.4
- Tier I 9.2 7.4 11.8 11.0 12.8 9.3 8.1
Asset Quality (%)
Gross NPAs 1.5 2.1 3.6 4.3 5.1 4.4 3.6
Net NPAs 0.7 1.0 1.5 2.1 2.1 1.1 0.6
Slippages 1.1 1.5 1.9 2.2 1.5 1.5 1.1
Loan Loss Prov./Avg. Assets 0.4 0.7 0.7 1.0 1.2 0.7 0.5
Provision Coverage 51.4 51.7 58.2 52.8 59.5 76.7 83.6
Per Share Data (Rs)
EPS 28.5 34.6 37.4 30.7 36.1 45.1 61.9
ABVPS 243.7 259.7 405.0 425.7 449.8 486.9 519.8
DPS 8.5 10.0 11.0 11.0 12.0 15.5 22.0
Valuation Ratios
PER (x) 32.9 27.2 25.1 30.6 26.0 20.8 15.2
P/ABVPS (x) 3.9 3.6 2.3 2.2 2.1 1.9 1.8
Dividend Yield 0.9 1.1 1.2 1.2 1.3 1.6 2.3
DuPont Analysis (%)
NII 2.0 2.3 2.2 2.4 2.3 2.3 2.4
(-) Prov. Exp. 0.8 1.1 1.1 1.3 1.2 0.8 0.6
Adj. NII 1.2 1.1 1.2 1.1 1.0 1.5 1.8
Treasury 0.4 0.4 0.2 0.5 0.2 0.1 0.1
Int. Sens. Inc. 1.6 1.5 1.4 1.5 1.2 1.6 1.9
Other Inc. 1.9 1.8 1.9 1.6 1.8 1.9 2.0
Op. Inc. 3.5 3.4 3.3 3.1 3.0 3.5 3.9
Opex 2.2 2.3 2.2 1.9 1.6 1.8 1.9
PBT 1.3 1.1 1.1 1.3 1.4 1.7 2.0
Taxes 0.3 0.2 0.2 0.4 0.4 0.5 0.6
RoA 1.1 0.9 0.8 0.9 1.0 1.2 1.4
Leverage (x) 13.9 14.9 12.6 10.1 9.5 9.7 11.1
RoE 14.8 13.4 10.3 9.2 9.7 11.7 15.5

August 2, 2010 12


Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
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This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
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Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please
refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and
its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement ICICI Bank
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No

Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)

August 2, 2010 13

ICICI Bank

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