Home / Markets / Stock Markets /  ICICI Bank share price rises 40% in 5 months. Is more steam left?

ICICI Bank share price has been in uptrend after ushering in the financial year 2022-23. The banking major has surged from around 675 to 950 apiece levels in last 5 months, logging to the tune of 40 per cent rise in this short time horizon. In fact, the stock is still giving upside movement hitting life-time high in last four successive trade sessions (from Friday last week to Wednesday this week).

According to market experts, fundamentals of ICICI Bank are still signaling positive trend as the private lender's advances grew by 23 per cent on YoY led by 25 per cent growth in retail loan and 43 per cent growth in business banking. The asset quality improved further during the quarter with net NPA ratio declining to 0.61 per cent from 0.70 per cent end June 2022 and 0.99 per cent end September 2021. Experts went on to add that those who missed to make money from recent ICICI Bank share price rally can still enter but only above 940 apiece levels.

Highlighting the fundamentals that may fuel ICICI Bank share price, Seema Srivastava, Senior Research Analyst, Equity- Fundamental at SMC Global Securities said, "The bank delivered strong all round performance. The advances grew by 23% on YoY led by 25% growth in retail loan and 43% growth in business banking. The deposits grew by 12%. During the quarter, the NIM improved to 4.31% as compared to 4% last year and 4.1% in first quarter of current fiscal. The asset quality improved further during the quarter with net NPA ratio declining to 0.61% from 0.70% end June 2022 and 0.99% end September 2021. Moreover, The bank is focusing on growing the core operating profit in a risk calibrated manner instead of loan growth. The bank aims to improve share of profitable market opportunities by making delivery to the customer more seamless and frictionless through digitization and process improvements." SMC expert went on to add that ICICI Bank stock looks good for long term perspective.

"ICICI Bank’s NIM at 4.3 per cent and asset quality improved QoQ (GNPA at 3.4 per cent), reflecting in strong profitability RoE of 17 per cent. On asset quality front, slippages to remains controlled in Q2FY23, 4370 crore as compared to 5830 crore that is likely to support asset quality and kept credit cost lower. Additional provision buffers provide comfort on stress from restructured book. We prefer with in large banks as ICICI Bank. It will offer relatively safe haven," said Jitendra Upadhyay, Sr. Equity Research Analyst at Bonanza Portfolio Management.

"In the last couple of years, we have witnessed higher and more consistent growth visibility at ICICI Bank. Now, ICICI Bank trades at a slightly higher P/BV than HDFC Bank, as its stock has outperformed from March 2022 till date by a wide margin. The health of the banking system is still at its highest point in a decade, and demand for loans is rising sharply in accordance with the recovery of the economy, suggesting that the banking industry as a whole will likely continue to do well. ICICI Bank's stocks will continue to outperform due to the bank's consistent growth outperformance, strong digital push, focus on risk-calibrated operating returns, and robust balance sheet. 1040 looks like an imminent target in FY23," said Santosh Meena, Head of Research at Swastika Investmart.

On suggestion to those who missed to ride the recent rally in ICICI Bank shares, Mehul Kothari, AVP — Technical Research at Anand Rathi said,, "ICICI Bank has made rising wedge kind of formation on chart pattern. The stock is facing resistance at 960 levels and below 940, there can be some profit booking taking place in the counter. So, one can buy ICICI Bank shares only above 940 maintaining stop loss at 920 levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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