Shorrt Inr + India eqts thesis

India is raising rates and likely will continue to do so, which benefits big banks.

ICICI is a Private Bank headquartered in India. In Q3 it’s net income rose 37% and net interest income increased 26% YoY. Deposits in the bank are rising and with it the size of the bank’s loan portfolio. Credit card processing revenue grew as well, and this trend is expected to continue as more businesses in India make digital payment available.

Inflation rising, India raised repo rates and will continue to rise

India is raising rates and likely will continue to do so, which benefits big banks.

India raised repo rates in its September meeting and is expected to continue raising repo rates to combat inflation. This is good for top banks like ICICI.

ICICI , largest Indian private sector bank, has experienced impressive growth, +13% last month, as India continues to outperform other emerging markets. low dividend yield at 0.26%, but good value at around 21 USD

ICICI Bank reported a strong 2QFY22, led by strong core PPOP performance, controlled provisions, and robust asset quality, with NNPA ratio (less than 100bp) at the lowest level since Dec’14.

The bank is seeing a strong recovery in business trends across key segments such as Retail, SME, and Business Banking. The Retail and Rural segment is showing robust trends, barring Commercial Vehicles.

Across the board, analysts have raised earnings expectations from around 820 rupees to almost even 1,000 rupees.