After the quarterly results, should one invest in ICICI Bank shares
ICICI Bank recorded record quarterly profit during October to December. During this period, the bank’s profit has increased by about 158 percent to Rs 4,146.50 crore. During this period, the asset quality of the bank also improved and Banking also reduced the provisioning. Currently, looking at the better quarterly performance of Leading Private Bank of the country, experts and brokerage houses are also positive about its stock and are recommending investment. Brokerage house Motilal Oswal has set a target of Rs 650 for the stock. At the same time, global brokerage house JP Morgan has also increased its target on the share from 560 to 650 rupees.
What does the report say
According to brokerage house Motilal Oswal, the December quarter has been better in terms of ICICI Bank. The bank posted a record quarterly profit. The bank saw better loan growth in retail, banking and SMEs during the December quarter. However, the deposit growth is less than expected. According to the report, the net profit of the bank increased by 158 per cent to Rs 4,146.50 crore due to decrease in provisioning and strong net interest income. During this period, there was about 24 percent growth in NII. Loan growth has been 13 per cent year-on-year and margin expansion at 13 basis points on a quarterly basis. It is expected that the operating performance will be healthy even further.
Can get 22% return
Motilal Oswal has set a target of Rs 650 in the stock. In terms of current price of Rs 535, the stock can get around 22 percent return. Global brokerage house JP Morgan has also raised the target for the stock from Rs 560 to Rs 650. According to the brokerage, the operating profit of the bank has been strong. Asset quality has improved and provisioning has also decreased. Loan growth has also been better. Further better growth is expected.
How were the quarterly results
ICICI Bank’s single net profit in the third quarter was a record Rs 4,146.46 crore. Total income rose 17.23 percent to Rs 23,638.26 crore. The gross NPA of the bank declined to 5.95 per cent during the December quarter, from 7.75 per cent in the same quarter a year ago. The bank’s net interest margin during this period was 3.77 percent. This was 3.64 percent in the previous quarter and 3.40 percent in the same quarter of the previous fiscal. The bank’s net NPA stood at 1.49 per cent in the third quarter. It was 2.58 per cent in the same quarter a year ago.
The provision of the bank (excluding tax) declined by 51 per cent to Rs 2,083 crore during the December quarter. It was Rs 4,244 crore in the same quarter a year ago.
(Disclaimer: We have not advised investment here. This information is based on the report of the brokerage house. Investing in the stock market is subject to risk, so consult the experts before investing.)
Source – Financial Express