ICICI Bank Share Price Today: ICICI Bank share price climbed over a per cent to hit its fresh 52-week high of Rs 1,008 in morning trade on BSE on Monday (July 24). Private lender on Saturday reported a 40 per cent rise in standalone net profit to Rs 9,648 crore for the June 2023 quarter, helped by a decline in bad loans and an improvement in interest income. The Mumbai-based private sector lender had posted a net profit of Rs 6,905 crore on a standalone basis in the year-ago period.
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Most brokerage firms retained their positive views about the stock as they found the lender’s Q1FY24 numbers better than expected. They also remain positive about the growth prospects of the company.
“ICICI Bank reported another steady quarter, driven by healthy NII and core PPoP (pre-provision operating profit) growth and controlled provisions underpinned by stable asset quality. The stable mix of the high-yielding portfolio (retail/business banking) and a low-cost liability franchise drove steady NII growth,” Motilal Oswal pointed out.
The brokerage firm highlighted that ICICI Bank is seeing a strong recovery across segments, while asset quality trends remain healthy with PCR at nearly 83 per cent. The additional Covid-related provision buffer (1.2 per cent of loans) provides further comfort.
“We estimate ICICI Bank to deliver RoA (return on assets) and RoE (return on equity) of 2.2 per cent and 17.9 per cent, respectively, in FY25. After a strong outperformance backed by robust earnings growth (three-year CAGR of nearly 60 per cent), we estimate earnings growth to moderate to an 18 per cent CAGR over FY23-25, affected largely by a decline in margins and limited levers available on the opex/credit cost front,” Motilal Oswal said.
CLSA has given a target of Rs 1225 per share on ICICI Bank backed by strong growth and confident commentary. “The bank has the highest earning certainty over the next three years. Net interest margin (NIM) moderation has been in-line and deposit accretion has picked up pace. Core pre-provision operating profit (PPoP) was reported 37 percent higher YoY and the bank will invest in growth In FY24. Earnings multiple of 15.5/13.5x FY24/25 Is still reasonable.”
Morgan Stanley has also given an overweight rating to ICICI Bank with a target price of Rs 1350 per share. Deposit growth of the bank accelerated to 18 percent YoY/5 percent QoQ in Q1. Deposit Growth has helped sustain strong domestic loan growth. The margin was adjusted for seasonality, yet the asset quality remains strong.
JPMorgan is also overweight on ICICI Bank and has given a target of Rs 1150. The brokerage house stated that the profit after tax (PAT) of ICICI Bank was ahead of estimates driven by lower provisions. Core PPoP was in line with estimates driven by loan growth and higher NIMs.
ICICI Bank stock has given a return of 15.41 per cent over the last six months. Thus, outperforming the Nifty Bank index which has given a return of 7.82 per cent over the same duration.
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