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.
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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.
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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.
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%. ”
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