Is ICICI Bank the new trend in banking stocks after a ‘spectacular’ quarter? | Techno Glob


Private lender ICICI Bank is a few rupees away from crossing its 1-year high on the stock exchange. During Muhurat trade, ICICI Bank saw strong buying with its eye-catching numbers in the second quarter of FY23. The bank was the top bull in the bank basket on Monday. In Q2Y23, The bank beat estimates with double-digit growth in profit and interest income, with healthier margins and improved asset quality. Analysts set a target price starting at a ‘buy’ rating on the bank. From 1000 1,135 each.

Investors rushed to add ICICI Bank shares to their portfolios when markets were allowed to trade between 6.15 pm and 7.15 pm on Monday. The stock rose nearly 3 percent in an hour. It reached an intraday high. 932.90 apiece, marginally away from the 52-week high of Rs. 936.35 per piece.

Stock closed. It rose to 925.90. 18.75 or 2.07% on BSE. More than its market cap 6.45 lakh crore.

ICICI Bank ranks among the top five performers in the Sensex and Nifty 50, making it the best performer in the banking sector.

The reason behind the stellar acquisition is the phenomenal numbers posted by the bank in Q2 of FY23.

ICICI Bank posted net profit for the July-September 2022 quarter. 7,558 crore in Q2FY23, up 37%. 5,511 crore in the same quarter last year. Net interest income (NII) jumped 26% yoy. 14,787 crore in Q2FY23. 11,690 crore in Q2 of FY22. In addition, Net interest margin for the quarter was 4.31%.

In addition, The bank’s asset quality improved by 3.19% in Q2FY23 and 3.41% in Q1FY23 and 4.82% in 22FY22. Net NPA ratio improved to 0.61% in Q2FY23 from 0.70% in Q1FY23 and 0.99% in Q2FY22.

September 30 By 2022, bank deposits jump to 12% yoy. 1,090,008 crore; 938.563 crores.

Should I buy ICICI Bank shares?

အစီရင်ခံစာတစ်ခုတွင် Phillip Capital မှ Manish Agarwalla နှင့် Sujal Kumar သုတေသနလေ့လာသုံးသပ်သူများသည် “ICICI ဘဏ်သည် NIM အံ့သြဖွယ်ကောင်းလောက်အောင် အားကောင်းပြီး တည်ငြိမ်သောဘဏ္ဍာရေးစွမ်းဆောင်ရည်ကို အစီရင်ခံပါသည်။ တိုးမြင့်လာခြင်းကြောင့် ယူနစ်အဆင့်အမြတ်အစွန်းရရှိမှုတိုးတက်မှု၊ ဝယ်ယူမှု/ဝန်ဆောင်မှုကုန်ကျစရိတ် သက်သာခြင်းနှင့် ပိုမိုကောင်းမွန်သော အကြွေးပြုမှုပုံစံသည် ဘဏ်အတွက် စျေးကွက်ဝေစုရရှိမှုကို ဖြစ်ပေါ်စေပါသည်။ ICICIBC သည် အရှိန်အဟုန်ဖြင့် ချေးငွေရယူရန်အတွက် ၎င်း၏ခိုင်မာသော ဒစ်ဂျစ်တယ်စွမ်းရည်ဖြင့် ချေးငွေရယူရန်အတွက် ခိုင်မာသော ဒစ်ဂျစ်တယ်စွမ်းရည်များပေးထားသည့် ရွယ်တူဘဏ်များကြားတွင် အကောင်းဆုံးဟု ကျွန်ုပ်တို့ယုံကြည်ပါသည်။ ခိုင်မာသောလက်ကျန်ရှင်းတမ်းနှင့် အရင်းအနှီးအနေအထားအရ The bank aims to capitalize on growth opportunities in the system.”

The two banks’ note said, “We expect continued improvement in return on risk assets for the bank, all set to be industry-highest in FY23. We expect earnings to grow +24%/20% in FY23e/24e translating to 2%/2.1% RoA. At CMP, ICICIBC is 2.9x /2.4x FY23e/24e core ABVPS ​​trades at 2.9x/2.4x 265/307 (valuation company subsidiaries are 175). We maintain Buy with revised TP. 1080 (Rs. 1070).

Meanwhile, Raj Jha, research analyst at Edelweiss Financial Services said, “ICICI Bank (ICICI) reported stunning numbers with NIM for the quarter in at least a decade and RoA for the quarter second highest. At least 2007. YoY credit growth highest in at least 12 years. Asset quality continues to improve with QoQ moderation in slippages reported by the bank.”

Jha said, “The bank expects to report mid-teens loan growth and RoA and RoE of 2% and 16% respectively. Revised TP’s 1,135/share.

Also, LKP Securities analyst Ajit Kumar Kabi said, “Its loan book is expected to grow at a CAGR of 20% over FY22-24E, led by technology initiatives. Borrowing cost normalization is underway. Return ratio ROA is estimated at 1.8% and /ROE of 15% in FY23E. .We value standalone with 3xFY24E BVPS. 320) and investment in subsidiaries and JVs ( 138 per share); We reach a target price. 1,097. Recommend to buy with 21% potential.”

Shares of ICICI Bank have jumped over 21% on Dalal Street in the current year.

Disclaimer: The above views and recommendations are those of Mint and not of individual reviewers or brokerage firms.

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