Shares of ICICI Bank hit record high in the afternoon session today amid positive sentiment in the broader market. ICICI Bank stock logged an all-time high of Rs 900.5, rising 2.75 per cent against the previous close of Rs 876.40 on BSE.Earlier, the stock opened higher at Rs 883.10. Meanwhile, the 30-share BSE Sensex surged 657 points or 1.11 per cent to trade at 59,686, while the broader NSE Nifty jumped 178 points or 1.01 per cent to trade at 17,802 in late deals. The Indian market was set to end in the green today after two straight sessions of losses.
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The banking share has gained 24.57 per cent in one year and risen 21.28 per cent since the beginning of this year. In a month, the share has climbed 7.34 per cent.The stock touched a 52 week low of Rs 642 on March 7 this year.
Total 5.64 lakh shares of the bank changed hands amounting to a turnover of Rs 50.58 crore on BSE. Market cap of the bank rose to Rs 6.26 lakh crore today. The rise in the banking stock comes on the back of a stellar rally in the banking sector. At 3:03 pm, the BSE bankex zoomed 857 points to 46,038.
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Another factor behind the bullish sentiment today is after the lender issued clarification on news of Rs 10,000 crore fund raise through infra bonds in one or more tranches. In its reply to the bourses on September 6, the bank clarified that it has the requisite annual board approvals which permits the issuance of bonds or securities.
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While clarifying on Rs 10,000 crore fund raise through infra bonds, ICICI Bank told the bourses, “ICICI Bank issues bonds as a part of its normal business operations as a bank, to fund its lending activity. The Bank has the requisite annual board approvals which permits the issuance of bonds/ securities during the period of one year from the date of approval and had duly reported the same to the exchanges on the date of the meeting (copy attached for reference). The Bank may undertake issuances within the approved limit at any time based on market conditions. In this connection, the Bank also obtains credit ratings which are disclosed by the agencies as per normal procedure prescribed. Any issuance of bonds by the Bank is done via the Electronic Bidding Platform (EBP) provided by the exchanges whereby 2 days prior intimation is provided to investors for bidding in the bonds. Subsequently, on the date of allotment, an intimation to the exchanges is sent with the details of the issuance.”
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ICICI Bank shares have risen 12.56 per cent since the announcement of Q1 earnings. The earnings were announced on July 23. The stock closed at Rs 800 on July 22 this year.
The lender reported a 50 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 6,905 crore as against Rs 4,616 crore in the corresponding quarter last year. Net interest income (NII) climbed 21 per cent YoY to Rs 13,210 crore and net interest margin (NIM) in Q1 stood at 4.92 per cent. In comparison, the lender’s NII stood at Rs 10,936 crore in the corresponding quarter of last fiscal.
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Total income rose to Rs 28,336.74 crore in Q1, against Rs 24,379.27 crore in Q1 FY22. Interest income climbed to Rs 23,671.54 crore in the last quarter against Rs 20,383.41 crore in the year-ago period. ICICI Bank said gross non-performing assets (NPAs) fell to 3.41 per cent of the gross advances at the end of Q1 FY23 from 5.15 per cent at the end of Q1 FY22.
