ICICI Bank has released its results for the March quarter last week, which the market has liked very much. Bank’s profit up 59 per cent year-on-year
There is a great rise in the shares of ICICI Bank today. On the one hand, if there is a fall in the market, then the stock of the bank has remained the top gainer of Sensex 30 today with strength up to 2 percent. The stock reached Rs 762 today, while on Friday it closed at Rs 747. The bank has released its results for the March quarter last week, which the market has liked very much. The bank’s profits have grown by 59 per cent year-on-year, while asset quality has improved. Recovery has been seen in all major segments including retail, SME and business banking. After the results, brokerage houses are also looking bullish on the stock.
Strong recovery across all major segments
Brokerage house Motilal Oswal says that the operating performance of ICICI Bank has been strong in 4QFY22. Bank’s profits were better due to provisioning control and strong PPOP performance. At the same time, the asset quality has also improved. The high-yield portfolio of retail and business banking shows stability, while NII has grown. There is a strong recovery in the segments of Retail, SME, Business Banking. There has been a slight increase in slippages. The credit cost of the bank has come down, which is very positive. The PCR is 79 percent, which is one of the best in the industry. The brokerage estimates that the bank’s RoA/RoE may be 1.9%/16.3% in FY24. The brokerage house has given a buy advice giving a target of Rs 1050 for the stock. In terms of current price of Rs 747, 40 percent return is possible in this.
Credit cost down, loan growth strong
Brokerage house CLSA has also given outperform rating for the stock and has set a target of Rs 1050. According to the brokerage, the loan growth of the bank is better. Core PPOP was the best in the sector. The benefit of growth in each segment will go ahead. Brokerage house Nomura has also given a target of Rs 960 while advising to buy. According to the brokerage, the bank’s asset quality is improving, while the bank’s RoE is expected to be 16% in FY24. Brokerage house Jefferies has given investment advice keeping the target of Rs 1070 for the stock. The brokerage says that the credit cost phenomenon is a positive factor. Macquarie has given a target of Rs 1000 while giving outperform rating.
How were ICICI Bank’s Q4 results
ICICI Bank’s profit in the March quarter increased by 59 percent year-on-year to Rs 7019 crore. Total deposits grew 14 per cent year-on-year to Rs 10,64,572 crore. Term deposits rose 9 per cent to Rs 5.46 lakh crore. Net interest income grew by 21 per cent year-on-year to Rs 12,605 crore. The home loan portfolio grew by 17 per cent year-on-year. Net NPAs (Non-Performing Assets) fell 24 per cent to Rs 6961 crore on a year-on-year basis. Net provision declined 63 per cent from Rs 2883 crore in March 2021 quarter to just Rs 1069 crore in March 2022 quarter.