ICICI Bank becomes the sixth valuable firm in India with over ₹5 trillion mcap after RIL, TCS, HDFC Bank, Infosys, and HUL
- 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.
AdvertisementICICI 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.
Data: BSE as of 1 p.m. on September 1, 2021
|Nifty 50 stocks above ₹5 trillion m-cap||Market cap (lakh crore)|
|Tata Consultancy Services||13.76|
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.
Prashant Khemka from White Oak Capital explaining why nearly a third of his portfolio is made of banking stocks
“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.
Shares of ICICI Bank have delivered average returns in comparison to other top bank stocks. It has gained 37%.
|Peer Banks||% returns in 2021|
|State Bank of India||54%|
|Kotak Mahindra Bank||-12%|
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.
AdvertisementAnalysts 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.
SEE ALSO: Sri Lanka declares economic emergency as food items go out of reach
Paytm valuation has increased by nearly $40 a share — here’s how
Popular on BI
- Dr Pepper forced to give $100K prize to BOTH contestants after boos erupt following odd tie-breaker at SEC championship halftime contest
- BHEL among 5 bidders for Rs 58,000 cr deal to manufacture, maintain 200 Vande Bharat trains
- ChatGPT is a new AI chatbot that can find mistakes in your code or write a story for you
- Real estate decarbonisation startup Accacia raises $2.5 million in seed round
- Google Pixel Fold, the company’s foldable phone, could soon become a reality as it appears on Geekbench ahead of its launch next year
- More than one in five people experience violence and harassment at work: ILO
- End of revenge spending? Urban spending to taper off in the next few quarters, says Motilal Oswal
- Rupee falls 24 paise to 82.09/$ amid rising crude, foreign fund outflows