*IBN 'Sum of Parts' Valuation:
*IBN Valuation Model Assumptions:
http://usequity.blogspot.com/2008/05/icici-bank-nyse-ibn-stock-analysis.html
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*Unrelated, IBN is expecting corporate loan growth of 35% with investments of $700 Billion by the corporate sector in the next 3 years. Per the loan breakdown at the bottom of this post, corporate loans currently account for less than 30% of ICICI Bank's total lending business.
http://www.livemint.com/2008/06/01134814/ICICI-Bank-eyes-35-corporate.html
ICICI Joint Managing Director Chanda Kochhar: “On corporate side we will grow faster than the industry. We will grow at least by 35%...I think the investment pipeline, which we estimate to be about $700 billion, will be the growth engine for GDP, for the banking sector in general and particularly for ICICI Bank. Half of these investments is manufacturing and half infrastructure...Earlier, we were riding only one engine of growth (retail) for five to six years which was growing upwards of 30-35%. Now, we have an additional engine of growth (corporate)...Retail credit base itself has become so large and with interest rates and real estate prices higher than what they were two to three years ago, rate of growth of the (retail) segment should be around 12-15% for the industry”
*Breaking Down IBN's Lending business:
1.) Corporate + International Business Lending = 32%
2.) Retail Lending (Indian consumer) = 58%
3.) Agriculture + SME Lending (small, medium enterprise) = 10%
Data Courtesy: July Fourteenth Capital Group.
Full Disclosure: I own shares of IBN.
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