Shillong, April 24: In the early trading session, ICICI Bank share price increased by roughly 3% to Rs 906.75 amid the enthusiasm, which quickly subsided. At 12 noon on Monday, the stock was trading at Rs 897.55, up 1.30 % from the BSE’s previous close price of Rs 884.20.
For the quarter that ended on March 31, 2023, ICICI Bank provided a great set of results, which increased investors’ trust in the company. The second-largest private lenders in India reported strong growth across the board, from net interest income (NIIs) to net interest margins (NIMs) and profit after tax (PAT) to non-performing assets (NPAs).
The brokerage firms claim that ICICI Bank had a successful fourth quarter of fiscal year 2023 due to sound credit growth, margin expansion, and improvements in asset quality. On a year over year (YoY) and quarter over quarter (QoQ) basis, the outcome was substantially in line with analysts’ predictions, which drove the stock up on Monday.
According to Equirus Securities, which has maintained its long rating and a target price of Rs 1,240, ICICI Bank posted healthy pre-provisioning operating profit (PPOP) and PAT growth of 34% and 30% YoY in 4QFY23, with NIMs up 25 bps QoQ to 4.9%, exceeding estimates. This suggests an upside potential of 40% from its previous close.
According to Equirus, key Q4 positives included domestic advances growing by 21% YoY, contained net slippages of Rs 14 crore caused by net upgrades in the corporate book and normalised upgrades in retail, additional contingency provisions at Rs 1,600 crore bringing total provisions to Rs 13,100 crore, a decrease in the restructured book to 0.4%, and a non-NPA provision buffer.
Once again, ICICI Bank produced solid, high-quality earnings. The thirteenth consecutive quarter of immaculate earnings has been declared by ICICI. Nuvama Institutional Equities stated in its study that the bank is well-positioned to beat peers even in the future thanks to a strong deposit franchise and digital leadership.