Shares of ICICI Bank Ltd crossed the ₹3 trillion market capitalisation for the first time on Friday, making it the country's fourth lender to achieve this milestone.
Intraday, the stock touched a fresh record high of ₹466 on the BSE, up 2.3% from its previous close. At 2.16pm, the scrip traded at ₹464 on the BSE, up 2.1%, with a market capitalisation of ₹3.01 trillion. The Sensex fell 0.51% to 38,833.22 points.
So far this October, ICICI Bank's stock has gained 6.6%, while year-to-date it has advanced 28%.
Earlier, HDFC Bank Ltd, State Bank of India and Kotak Mahindra Bank had achieved this landmark. HDFC Bank remains India's most valued bank with market cap of ₹6.70 trillion followed by Kotak Mahindra Bank with ₹3.02 trillion.
Foreign institutional investors’ (FII) holding in ICICI Bank has come down by 2.6% quarter on quarter, the latest shareholding pattern shows. “This can trigger its invisibility multiplier in index getting changed to 1 from 0.5. This will increase in doubling weight and could see inflows of $1.20 billion," Bloomberg quint reported quoting Motilal Oswal latest note.
Bloomberg quint also reported, quoting Morgan Stanley, that there was high probability of weight increase in ICICI Bank on MSCI which could see inflows of $900 mln.
ICICI Bank will announce its September quarter earnings on 26 October. According to 21 Bloomberg analyst estimates, the lender is expected to report a profit of ₹1270.40 crore.
Brokerage firm Kotak Institutional Equities research expects ICICI Bank to report a solid pre-provisional operating profit growth of 28% year-on-year led by healthy loan growth (15% YoY) and better net interest income growth (24% YoY). NIM will remain stable quarter-on-quarter.
"We expect reduction in gross NPLs on the back of write-offs and slippages at 2% levels. Credit costs will decline qoq. Below investment grade portfolio will remain stable. Higher DTA would impact reported earnings," the brokerage firm added in a 4 October report.
According to Motilal Oswal Research, the bank has delivered a steady performance at the pre-provision operating profit level and is showing healthy signs of earnings normalization. The bank is on track to achieve its 15% return on equity guidance, it added.
The brokerage firm maintained its buy rating on the shares of the lender and set a target price of ₹530 a share.