Other than operating leverage, don’t see any ROA expansion lever for ICICI Bank: Rahul Malani

Analyst Rahul Malani from Sharekhan by BNP Paribas has stated that ICICI Bank has been trading at around two times its one-year forward P/E multiple, and that its outlook is strong, with ICICI sustaining a 2% ROA in the near to medium term. There are, however, limited ROA expansion levers from here on, he says. As for HDFC Bank, Malani says a near-term rally is possible due to relaxed regulation and eased capital requirement norms. The inclusion of the combined entity in MSCI indices will boost flows, he said.