Kotak Securities has maintained `Buy` on ICICI Bank with a price target of Rs 1,108 in its report dated June 14, 2012. The broking firm gave following investment rationale on the stock:

ICICI bank has reported improvement in its ALM with increase in share of deposits in <1 Yr bucket from 44.1% in FY11 to 54.5% in FY12, which bodes well for the bank in the falling interest rate environment.

Even though system was facing migration of CASA deposits to term deposits during FY12, its CASA share remained stable at 43.5% at the end of FY12, which is key to the likely improvement in its future NIM, in its view. We are modeling NIM to come at 2.85% during FY13 as compared to 2.73% achieved during FY12.

We reiterate Buy on the stock with the TP of Rs 1,108 (Rs 1,103 earlier) using SOTP method, where the value of its standalone business comes to Rs 886 (1.6x FY13E ABV) and the value of subsidiaries at Rs 223 (holding company discount: 20% to the fair value of its subsidiaries at Rs 278).

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