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ICICI Bank is covered by 51 analysts on the Street and it enjoys 98% Buy ratings, followed by L&T (98%), ITC (97%), State Bank of India or SBI (96%) and HDFC (96%), said Motilal Oswal in a report that pore over the Nifty consensus data sourced from Bloomberg to take note of which stocks are most favored on the street, and the possible target of the Nifty at the market, sector and stock levels.

The index, which currently trades above 17,600, is expected to reach near 20,000, as per analysts. Based on the consensus target prices for the Nifty 50 companies, there is a potential upside of 13% for Nifty 50 index to 19,717.

Private banks, oil & gas, NBFCs, technology, PSU banks, telecom and consumer are likely to contribute the most to the Nifty index’s upside. However, analysts note that oil & gas, autos, consumer, PSU banks and private Banks have outperformed the markets YTD’CY22 with 18%, 18%, 14%, 11% and 8% returns, respectively. The top-10 stocks will likely contribute 72% to the Nifty’s target upside.

ICICI Bank reported a standalone net profit of 6,905 crore in the June quarter of FY23, up 50% from 4,616 crore in the same period last year, owing to higher net interest income (NII) and lower provisions. Its NII, the difference between interest earned and interest expended, rose 21% year-on-year (y-o-y) to 13,210 crore in the Q1 of FY23. 

Net interest margin (NIM), a key measure of profitability, expanded 1 basis point (bps) sequentially to 4.01%. On the other hand, the bank’s provisions were down 60% from the year-ago quarter to 1,144 crore.

The private sector lender saw improved asset quality as its gross non-performing assets (NPAs) as a percentage of gross advances declined 19 bps sequentially to 3.41% and the net NPA ratio stood at 0.7%, down 6 bps from the March quarter.

Private sector lender ICICI Bank shares are up 24% in a year's period, whereas the bank stock is up about 13% in 2022 (year-to-date or YTD) so far. It has the market capitalization of around 6 lakh crore on the BSE.

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