ICICI Bank’s market capitalization has surpassed the Rs 9 trillion mark, with its shares climbing to a new high of Rs 1,280 during intra-day trading on Wednesday. This represents a 1 percent increase on the Bombay Stock Exchange (BSE). In the past week, ICICI Bank has outperformed the market, gaining 3.5 percent compared to a 1.9 percent rise in the BSE Sensex.
With a market capitalization of Rs 9.01 trillion, ICICI Bank now ranks as the fourth largest listed company in India, following Reliance Industries, Tata Consultancy Services (TCS), HDFC Bank, and Bharti Airtel. So far in 2024, the bank’s stock has rallied by 28 percent, outperforming the benchmark BSE Sensex, which has risen by 15 percent.
ICICI Bank is a key player in the Indian financial sector, with diversified interests that include banking, insurance, asset management, securities broking, and private equity. Moving forward, the bank has expressed its intent to maximize profit before tax, excluding treasury, while adhering to compliance and risk management protocols. Management believes there are ample opportunities for profitable growth across various sectors of the economy.
The bank’s risk management framework is designed to articulate its risk appetite and establish limits across different risk categories. In its annual report for FY24, ICICI Bank outlined plans to grow its loan portfolio cautiously, balancing risk and reward while maintaining targeted levels for capital return and provisioning.
While the bank has not set specific targets for loan mix or growth by segment, it aims to enhance its deposit franchise and maintain a competitive funding profile. The management has reiterated its commitment to risk-calibrated growth, with plans to merge its securities business subsidiary into the bank to improve cross-selling opportunities.
Despite challenges within the sector, analysts at Emkay Global Financial Services maintain a positive outlook, asserting that ICICI Bank is well-positioned for superior growth and asset quality outcomes. The bank is expected to benefit from a potential 50 basis points cut in the repo rate, although normalization of margins is anticipated to be gradual.
While retail non-performing assets (NPAs) are on the rise, primarily in unsecured loans, they remain within acceptable levels. Emkay Global noted that the bank’s high specific provision coverage ratio, alongside a contingent provision buffer of 1.1 percent of loans, should support a return on assets exceeding 2 percent during FY25-27.
ICICI Bank has also addressed speculation regarding the early retirement of its Managing Director and CEO, Sandeep Bakhshi, confirming that he will complete his term, which extends until October 2026. Emkay Global has retained its ‘Buy’ rating for ICICI Bank, maintaining a target price of Rs 1,450 per share.
Analysts at KRChoksey Shares and Securities also reported that ICICI Bank continues to demonstrate solid core operating performance amidst macroeconomic challenges. They noted the bank’s optimism regarding deposit inflows, which are expected to drive credit growth in the coming quarters. The bank plans to invest in branch expansion and digital banking initiatives while maintaining stability in its cost-to-income ratio.
