25 April 2023, Bengaluru, India
India’s second-largest private lenders have reported satisfactory growth after the Q4 period ended on March 31st. The private bank registered extraordinary numbers at the end of the fourth quarter of the financial year 23 (FY23), with increased numbers in net interest income (NIIs), net interest margins (NIMs), profit after tax (PAT), and non-performing assets (NPAs).
Reports emerging from the industry tell that ICICI Bank has performed strongly in the Q4 FY23 and is back on healthy credit growth, margin expansion, and improvement in asset quality. The results were under the analysts’ predicted estimates on a year-on-year (YoY) and quarter-on-quarter (QoQ) basis.
“Factoring stable balance sheet growth and credit cost of below 1 percent in FY24E, we estimate the bank’s FY23E ROA and ROE of 2.1 percent and 16.8 percent, respectively,” said Nirav Sanghavi, the owner of LKP Securities.
As per the data in the reports, ICICI Bank’s shares jumped about 3 percent in the early morning session. It didn’t stay there long and soon came down to ₹895.25 at 10.30 am on Monday, which was about a percent higher than its previous value in BSE.
“We believe ICICI Bank deserves to trade at a premium to peers given consistent and granular earnings outperformance. We find the bank well-positioned to maintain high credit growth and stable NIM in FY24E, even amidst slowing sector growth. We revise the target price to Rs 1,180, from Rs 1,115, and reiterate the ‘buy’ rating,” said Nuvama Institutional Equities in its report.
ICICI Bank has shown consistent growth in its earnings after reporting flawless growth in its income for the thirteenth quarter in a row. Such growth impressed Nuvama Institutional Equities, and it said in its reports that ICICI Bank’s strong deposit franchise and digital leadership will outperform its peers in the future.
Rahul Chadha, CIO of Mirae Asset Global Investments, says that the rally will be led to success by the likes of ICICI and Reliance in the domestic sector. Rahul added that he believes these public sector firms would take the market to the next level.
One of the leaders in the platform of share broking, LKP Securities, acknowledged ICICI Bank’s sustainable and prudent growth, which is led by tech-driven initiatives, is one of the reasons for its immense growth in the Q4 of FY23. Strong performances from the domestic sector have set a positive journey for the future.
Sources – The Economic Times, Business Today
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