ICICI Bank shares hit a record high in today’s afternoon session amid positive sentiment in the broader market. ICICI Bank shares hit an all-time high of Rs 900.5, rising 2.75 percent from the previous close of Rs 876.40 on BSE. Earlier, the shares opened higher at Rs 883.10. Meanwhile, the 30-share BSE Sensex rose 657 points or 1.11 percent to trade at 59,686, while the broader NSE Nifty jumped 178 points or 1.01 percent to trade at 17,802 in late deals. The Indian market was bound to end in the green today after two consecutive losing sessions.
Bank holding has gained 24.57 percent in a year and is up 21.28 percent since the beginning of this year. In one month, the stock was up 7.34 percent. The stock hit a 52-week low of Rs 642 on March 7 this year.
A total of 5.64 lakh shares of the bank changed hands, resulting in a turnover of Rs 50.58 crore in BSE. The bank’s market capitalization rose to Rs 6.26 lakh crore today. The rise in bank stocks comes on the back of a stellar rally in the banking sector. At 3:03 pm, the BSE bankex rose 857 points to 46,038.
Punit Patni, Equity Research Analyst, Swastika Investmart, said: “ICICI Bank has had a stellar performance in the banking sector for the last 5 years due to a strong improvement in its fundamentals. We are positive on the bank due to its CASA and low cost of funds advantage, focus on granular retail lending, digital initiatives and an optimistic outlook on asset quality The bank will be one of the biggest beneficiaries of the next credit growth cycle However, the re-rating in terms of valuation multiples has been more or less complete and the next stage of re-rating will come from earnings growth. Despite the current outperformance, we remain constructive on the bank from a medium to long-term perspective.”
Another factor behind today’s bullish sentiment is after the lender issued a clarification on the news of raising funds of Rs 10,000 crore through infrastructure bonds in one or more tranches. In its response to the bourses on September 6, the bank clarified that it has the required annual approvals from the board that allow the issuance of bonds or securities.
While clarifying about the Rs 10,000 crore fundraising through infrastructure bonds, ICICI Bank told stock exchanges: “ICICI Bank issues bonds as part of its normal business operations as a bank, to finance its lending activity. The bank has the required annual approvals from the meeting that allows the issuance of bonds/securities for a period of one year from the date of approval and has duly informed the stock markets on the date of the meeting (a copy is attached for reference) The Bank may issue within the approved limit at any time based on market conditions In this sense, the Bank also obtains credit ratings that are disclosed by the agencies according to the normal prescribed procedure Any bond issuance by the Bank is carried out through the Electronic Bidding Platform (EBP) provided by the stock exchanges through which av iso to investors 2 days in advance for the auction of the bonds, later on the award date a notice is sent to the stock exchanges with the details of the issue. “
ICICI Bank shares have risen 12.56 percent since the first-quarter earnings announcement. Earnings were announced on July 23. The shares closed at Rs 800 on July 22 this year.
The lender reported a 50 per cent YoY increase in profit after tax (PAT) to Rs 6,905 crore from Rs 4,616 crore in the corresponding quarter last year. Net Interest Income (NII) increased by 21% YoY to Rs 13,210 crore and Net Interest Margin (NIM) in Q1 stood at 4.92%. By comparison, the lender’s NII stood at Rs 10,936 crore in the corresponding quarter of the last fiscal year.
Total income rose to Rs 28,336.74 crore in the first quarter from Rs 24,379.27 crore in the first quarter of FY22. Interest income rose to Rs 23,671.54 crore in the latest quarter vs. Rs 20,383.41 crore in the same period of the previous year. ICICI Bank said gross non-performing assets (NPA) fell to 3.41 percent of gross advances at the end of the first quarter of fiscal 23 from 5.15 percent at the end of the first quarter of fiscal year 22.