ICICI Bank becomes the sixth valuable firm in India with over ₹5 trillion mcap after RIL, TCS, HDFC Bank, Infosys, and HUL

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ICICI Bank becomes the sixth valuable firm in India with over ₹5 trillion mcap after RIL, TCS, HDFC Bank, Infosys, and HUL
BCCL
  • ICICI Bank stock has been on a gaining streak since the last five days, which led to bank’s shares crossing the ₹5 trillion mark.
  • The lender is now among the list of the most valued companies on Nifty 50 index.
  • With this, ICICI Bank becomes the second lender after HDFC Bank and sixth company to achieve this milestone.
ICICI Bank, one of the leading lenders in the country, has become more valued than ever before as its market capitalisation crossed ₹5 lakh crore today.

With this, ICICI Bank became the second lender after HDFC Bank and the sixth company, overall, to achieve this milestone in India’s corporate history.

It has joined the list of top companies with higher market cap -- Reliance Industries (RIL), Tata Consultancy Services (TCS), HDFC Bank, Infosys and Hindustan Unilever (HUL). These companies are known for their strong business capabilities and earnings performance.

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Nifty 50 stocks above ₹5 trillion m-capMarket cap (lakh crore)
Reliance Industries14.39
Tata Consultancy Services13.76
HDFC Bank8.79
Infosys7.11
Hindustan Unilever6.46
ICICI Bank5.01
Data: BSE as of 1 p.m. on September 1, 2021

Overall, the ICICI Bank stock has been on a gaining streak since recent times as the bank reported better than expected earnings led by healthy net interest income and provisions.

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“COVID 2.0 has disrupted collections, leading to elevated slippages in the retail/business banking portfolio. However, the management is confident of improved asset quality trends over FY22, mainly from second half onwards. Restructured loans remain under control at 0.7% of loans. Provision coverage remains best in the industry and additional COVID-19 provision buffer (0.9% of loans) provides comfort on normalisation in credit cost,” said a report by Motilal Oswal.

ICICI Bank becomes the sixth valuable firm in India with over ₹5 trillion mcap after RIL, TCS, HDFC Bank, Infosys, and HUL
Flourish/BSE data

Shares of ICICI Bank have delivered average returns in comparison to other top bank stocks. It has gained 37%.

Peer Banks% returns in 2021
HDFC Bank11%
State Bank of India54%
ICICI Bank37%
Axis Bank29%
Kotak Mahindra Bank-12%

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A report by Centrum Capital feels that the non-performing assets (NPAs) of the bank may decline going ahead leading to lesser provisioning by the lender. It maintained a ‘buy’ rating on the stock with a target price of ₹780.

Analysts at Motilal Oswal have also maintained a ‘buy’ rating on the stock as it expects earnings to remain strong after a steady June quarter. It has set a target price of ₹835.

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