On Monday, ICICI Bank‘s shares were trading at Rs 1,143.95, a 1.06% rise from the previous session. The 52 week high and low of the share is Rs 1,169.55 and Rs 899 respectively.
According to the BSE analytics, the shares have given returns of 21.39 per cent in the last 1 year, 48.43 per cent in the last 3 years, and massive returns of 91.19 per cent in the last 5 years.
A report from Kotak Securities highlighted a 17% year-on-year earnings growth, driven by a 10% increase in operating profit and reduced provisions. The bank’s Net Interest Margin (NIM) remained steady at 4.4%.
The impressive deposit growth of 20% year-on-year was noted, with a comfortable credit-deposit ratio of 85%. The bank’s asset quality also showed resilience. Kotak Securities reaffirmed a “BUY” rating with a revised fair value of Rs 1,300, up from Rs 1,220.
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The key positive highlights include robust and broad-based loan growth, along with a 20% year-on-year increase in deposits, outpacing the 16% loan growth. The bank’s CASA (Current Account Savings Account) ratio improved by 250 basis points quarter-on-quarter to 42%.
Additionally, the Gross Non-Performing Loan (GNPL) ratio fell by 10 basis points to 2.3%, while the Net Non-Performing Loan (NNPL) ratio remained stable at 0.5%.
However, the report cautioned that the Net Interest Margin might see only a marginal contraction moving forward. Overall, ICICI Bank is well-positioned to maintain its leading return and growth ratios.
Also, Mr. Pradeep Kumar Sinha has been appointed as the Non-executive Part-time Chairman of ICICI Bank, effective from July 1, 2024, or upon receiving approval from the Reserve Bank of India (RBI), whichever is later. This appointment follows the retirement of Mr. G. C. Chaturvedi, who will step down on June 30, 2024.
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The RBI has confirmed the appointment of Mr. Sinha in a letter dated May 24, 2024. He will serve as Part-time Chairman for a three-year term starting from July 1, 2024.
