ICICI Bank shares continued their journey north, with the stock hitting a new all-time high of Rs 942.7 apiece on the BSE in Tuesday’s opening session after the bank delivered strong results for its second quarter ending September 2022 or Q2 FY23.
The counter has delivered a positive return of more than 4 percent in the past five days. This is apparently because the lender delivered strong results in the quarter ended September 30, 2022 (Q2-2023).
While the company’s core operating profit grew 24 percent year-on-year to Rs 11,765 crore, its after-tax profit grew 37 percent.
In addition, the quality of the bank’s assets improved with a gross NPA of 3.19 percent in Q2FY23 versus 3.41 percent in Q1FY23 and 4.82 percent in Q2FY22. The net NPA ratio improved to 0.61 percent in Q2FY23 from 0.70 percent in Q1FY23 and 0.99 percent in Q2FY22.
On September 30, 2022, the bank’s deposits rose 12 percent yoy to Rs 1,090,008 crore, while advances rose 23 percent yoy to Rs 938,563 crore.
Should you buy, hold or sell?
“ICICI Bank delivered strong outperformance and the highest growth in NII among major banks, even on a high base. ICICI maintains its position as the best-in-class performer for the eighth quarter, outperforming its competitors on every measure from core PPOP to treasury and buffering. We repeat ‘BUY/SO’ and top pick. We believe that the bank can continue to deliver on credit growth and NIM expansion even on a high footing. With eight consecutive quarters of best-in-class gains and NIM expansion likely to continue,” Edelweiss said, reiterating his ‘Buy’ rating on ICICI Bank shares with a price target of Rs 1,115.
“ICICI Bank reported strong performance in the second quarter of 23, driven by robust credit growth, high multi-quarter margins and lower borrowing costs. Credit growth was 22.7 percent year on year, largely led by all segments. Opex growth was high as the bank continued to invest in technology. Gross delinquencies decreased sharply, leading to an improvement in asset quality,” said Nirmal Bang.
HSBC Broking has maintained a ‘Buy’ call on ICICI Bank and raised the target from Rs 1,020 to Rs 1,100. Similarly, Morgan Stanley has maintained an ‘overweight’ rating on ICICI Bank and set a price target of Rs 1,250.
ICICI Bank shares are up 21.49 percent so far this year. This is much better compared to an increase of about 0.51 in the broader Nifty50 over the period. Similarly, the scrip has outperformed by gaining 21.63 percent on the BSE so far this year, compared to a roughly 1.01 percent increase in benchmark BSE Sensex over the period.
When trading was allowed in the markets Monday from 6:15 pm to 7:15 pm, investors were quick to add ICICI Bank stocks to their portfolios. The stock rose nearly 3 percent in an hour. It hit an intraday high of Rs 932.90 each, which was just a few rupees from the 52-week high of Rs 936.35 each.
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