ICICI Bank stock hits new record high; is there more rally ahead?

According to the latest data from BSE, ICICI Bank is currently ranked as the fourth most valued Indian listed firm. Taking the stock's all-time high of 1,013.85 into account, the bank's m-cap reached 7,08,062 crore.

A Ksheerasagar
Published5 Dec 2023, 01:08 PM IST
For the September-ending quarter (Q2FY24), ICICI Bank demonstrated significant growth, with net interest income (NII) expanding by 23.8% YoY to  <span class='webrupee'>₹</span>18,308 crore.
For the September-ending quarter (Q2FY24), ICICI Bank demonstrated significant growth, with net interest income (NII) expanding by 23.8% YoY to ₹18,308 crore. (Mint)

Sustaining their strong upward momentum for the third consecutive trading session, shares of ICICI Bank, one of the largest private sector banks in India, gained 2.28% in today's trade, setting a new record high of 1,013.85 apiece. The stock's previous peak was recorded in July 2023 at 1,008.70.

According to the latest data from BSE, ICICI Bank is currently ranked as the fourth most valued Indian listed firm. Taking the stock's all-time high of 1,013.85 into account, the bank's m-cap reached 7,08,062 crore.

Over the last six trading sessions, the stock jumped 7.38%, and year to date, it has yielded a return of 12.81%, outperforming the Nifty Bank index, which gained 8.95% in the same period.

Also Read: Nifty Bank hits new record high as market surges sharply; ICICI Bank top gainer

The recent strong performance of the BJP in state elections has instilled confidence of political stability for 2024. This positive outlook bodes well for India's macroeconomic and policy momentum, especially considering the country's leading growth among major economies in terms of both GDP and corporate earnings. This in turn could boost financial and banking activities going forward, according to a recent note from domestic brokerage firm Motilal Oswal.

Also Read: Stock markets optimistic post state poll results. Are the valuations justified?

"We like ICICI Bank as it is making progress towards a sustainable growth which is evident from its strong contingency buffers, robust underwriting and risk-monitoring mechanisms," the brokerage said. 

According to Motilal Oswal, the bank maintains an impressive profile with one of the highest proportions of retail deposits, a robust CASA mix of 43%, and a best-in-class Provision Coverage Ratio (PCR) of 83%. In light of these factors, the brokerage retains its 'buy' call on the stock with a target price of 1,120 apiece.

Also Read: ICICI Bank gets approval from Indian bourses for delisting of ICICI Securities shares

For the September-ending quarter (Q2FY24), ICICI Bank demonstrated significant growth, with net interest income (NII) expanding by 23.8% YoY to 18,308 crore. The net interest margin (NIM) also increased by 22 basis points YoY to 4.53%.

The gross non-performing asset (GNPA) and net non-performing asset (NNPA) ratios stood at 2.48% and 0.43%, respectively (compared to 2.76% and 0.48% in Q1 FY24).

The pre-provisioning profit reached 14,229 crore, marking a 21.8% YoY increase, while the profit after tax (PAT) surged by 35.8% YoY to 10,261 crore, supported by lower provisioning.

Following the bank's Q2FY24 performance, brokerage firm Geojit Financial Services updated the rating on the stock to 'buy' from 'hold' with a SOTP-based target price of 1,054 apiece.

Also Read: Can Nifty 50 hit 25,000 by General Elections 2024? Experts weigh in

With strong growth momentum in advances and deposits, healthy asset quality, robust digital capabilities, and sufficient capitalisation, the bank is poised to deliver strong earnings performance. Although NIM may moderate in the near term due to the lagged impact of an increase in term deposit rates in FY23, the brokerage remains positive about the bank's long-term growth prospects.

At 12:15 PM, the stock was trading with a gain of 1.80% at 1,009 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:5 Dec 2023, 01:08 PM IST
Business NewsMarketsStock MarketsICICI Bank stock hits new record high; is there more rally ahead?

Most Active Stocks

Tata Steel share price

138.00
03:57 PM | 14 NOV 2024
-1.25 (-0.9%)

Indian Oil Corporation share price

134.80
03:59 PM | 14 NOV 2024
-1.2 (-0.88%)

Tata Motors share price

774.25
03:58 PM | 14 NOV 2024
-12.15 (-1.55%)

Bharat Electronics share price

281.05
03:57 PM | 14 NOV 2024
-0.4 (-0.14%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

SKF India share price

4,507.70
03:57 PM | 14 NOV 2024
-364.25 (-7.48%)

Astrazeneca Pharma India share price

6,740.65
03:29 PM | 14 NOV 2024
-392.45 (-5.5%)

Torrent Power share price

1,560.00
03:29 PM | 14 NOV 2024
-85.45 (-5.19%)

P I Industries share price

4,244.25
03:29 PM | 14 NOV 2024
-204.85 (-4.6%)
More from Top Losers

DCM Shriram share price

1,291.05
03:29 PM | 14 NOV 2024
104.2 (8.78%)

Network 18 Media & Investments share price

84.78
03:50 PM | 14 NOV 2024
6.63 (8.48%)

Eicher Motors share price

4,885.55
03:52 PM | 14 NOV 2024
296.45 (6.46%)

Jio Financial Services share price

318.45
03:58 PM | 14 NOV 2024
19.05 (6.36%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    76,855.000.00
    Chennai
    76,861.000.00
    Delhi
    77,013.000.00
    Kolkata
    76,865.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.92/L0.00
    Chennai
    101.03/L0.23
    Kolkata
    104.95/L0.00
    New Delhi
    94.77/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts