Zacks Investment Research downgraded shares of ICICI Bank Limited (IBN) from OUTPERFORM to UNDERPERFORM on May 31, 2013, with a target price of $43.00.
We are downgrading our long-term recommendation on ICICI Bank to Underperform based on the deterioration of its credit quality. However, the company's fiscal fourth-quarter results were impressive with 21% year-over-year increase in net income. Results benefited mainly from increased net interest income and lower provisions, partially offset by higher operating expenses and a decline in fee income. We expect continued synergies from the company's increased dependence on domestic loans, an almost stable fund base and market leadership in the insurance business. However, a highly competitive operating environment, continuously rising operating expenses and stringent regulatory requirements remain the primary concerns.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on ICICI Bank Limited (IBN),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment