ICICI Bank Stocks Outlook: After the quarterly results, ICICI Bank, the leading private sector bank, is witnessing a spurt. In today’s business, ICICI Bank has seen a gain of close to 5 per cent and the stock has reached a price of Rs 605. In fact, ICICI Bank has produced excellent results in the March quarter. During this period, there has been a strong jump of 260 per cent in the profits of the bank. At the same time, this quarter has proved to be the best quarter for the bank in 21 quarters in terms of asset quality. Currently, most brokerage houses have given positive opinion about the stock after the results.
Core operating performance
Brokerage house Metilal Oswal says that ICICI Bank has done strong performance in the March quarter on the business front. The bank has outperformed in every segment in retail, SME and corporate portfolios. Core operating performance was also strong. However, there has been some impact on profits from muted income and treasury losses.
Improvement in asset quality
There has been a significant improvement in the asset quality of the bank, which is the most positive factor. GNPA / NNPA ratio in the third quarter has been 4.96% / 1.14%, which is better than expected. Restructured loans have been 0.5 per cent of the total loans. The bank has provisioned 7475 crores for related measures from COVID 19. It is a strong buffer, although it will be necessary to see how the cases of COVID 19 are controlled further.
Profits rose 260%
ICICI Bank’s standalone profit has increased by about 260.5 per cent to Rs 4,402.61 crore. The bank’s standalone profit was Rs 1,221.4 crore in the same quarter last year. The bank’s net interest income grew 16.9 per cent to Rs 10,431.13 crore in the March quarter. The bank’s other income grew 3.4 per cent year-on-year to Rs 4,111.35 crore in the March quarter; At the same time, before the provisioning, the operating profit of the bank increased by 15.6 per cent to Rs 8,539.83 crore.
What is the opinion of the brokerage house
Brokerage House Motilal Oswal The company has set a target of Rs 750, recommending the purchase in the stock. In Friday’s closing price of Rs 570, it can get 32 percent return. Brokerage House JP Morgan Has also given an overweight rating on ICICI Bank and has set a target of Rs 675 for the stock.
Brokerage House CLSA Has also advised to buy on ICICI Bank and has fixed a target of 825 rupees for the stock. In Friday’s closing price of Rs 570, it can get 45 percent return. According to the brokerage, 18 per cent growth in domestic business is a positive factor on an annual basis. The asset quality of the bank is strong. There itself Morgan Stanley Giving an overweight rating on the stock, the target has been set at Rs 850. In terms of current price, it can get about 50 percent return.
(Note- We have given information here based on the quarterly performance of the bank and the report of the brokerage house. Given the risk of the market, take the opinion of the first expert before investing.)