ICICI Bank Share Grows 6% After Fourth Quarter Results, Here’s What Brokers Say

ICICI Bank’s share rose more than 6% today after the lender reported a jump of more than three times its stand-alone net profit for the January-March quarter. ICICI Bank’s share gained 6.11% to an intraday high of Rs 604.9. The stock opened with a gain of 5.31% at Rs 602 today.

Large cap stocks trade at above 5-day, 20-day, 100-day, and 200-day moving averages, but below 50-day moving averages.

The share has increased by 79.44% in one year and has gained 12.35% since the beginning of this year. The company’s market capitalization soared to Rs 4.16 lakh crore on BSE today.

ICICI Bank on Saturday reported stand-alone net profit of Rs 4,403 crore in the fourth quarter compared to net profit of Rs 1,221 crore in the quarter a year earlier.

Total income increased to Rs 23,953 crore in the fourth quarter from Rs 23,443 crore in the previous year quarter.

On a consolidated basis, the private sector lender’s net profit jumped to Rs 4,886 crore in the March quarter from Rs 1,251 crore in the last quarter of 2019-20.

Income on a consolidated basis increased to Rs 43,621 crore from Rs 40,121 crore for the reported quarter.

Sensex zooms 750 points, Nifty above 14,550 despite record rise in Covid-19 cases

Gross non-performing assets (NPA) or bad debts fell to 4.96% of gross advances at the end of March 2021 from 5.53% as of March 31, 2020.

Net NPAs also fell to 1.14% from 1.41%.

Provisions for bad and bad debts fell to Rs 2,883.47 crore in the fourth quarter, against Rs 5,967.44 crore stationed a year ago in the same quarter.

ICICI Bank FY21 profit doubles to Rs 16,193 crore; asset quality improves

Here’s what the brokerages said after the lender reported its fourth quarter results.

Motilal Oswal said: “Liability franchise continues to improve with healthy CASA growth. The bank achieved double-digit RoE (~ 12.6%) for the first time after fiscal 2017, and we expect that the RoA / RoE will improve to 1.7% / 15.2% in Buy with a price target of Rs 750 per share (2.4x ABV FY23E for the autonomous bank).

LKP Securities increased the target share price by 23.3%.

“We expect the bank’s loan portfolio to prudently grow at a 16% CAGR over fiscal years 21-23E, driven by balanced growth across all segments. 13.6% in FY22E. We value the stand-alone entity with 2.2xFY23E BVPS (Rs 268) and an investment in subsidiaries and JVs (Rs 113 per share); we arrive at an unchanged target price of Rs 703. We recommend the BUY rating with a potential upside of 23.3%. ”

Actions in the news: ICICI Bank, HCL Tech, SBI Card, Tech Mahindra and more

About William W.

Check Also

How Fidelity Bank is driving digital financial inclusion in Nigeria with impressive 2021 half year result – Nairametrics

According to a report released by Enhancing Financial Innovation & Access (EFInA) in early June …