The fall in ICICI Bank shares reflects the market’s dislike of banking stocks this week

• ICICI Bank’s share price fell by over 4% in early morning trade on Monday.
• Not just ICICI Bank, but other major banking stocks including HDFC Bank, Axis Bank, SBI, PNB, and IndusInd Bank have also taken a beating.
• Despite the market’s glum mood, brokerages expect the stock to rise anywhere between 26% and 29% in the next year.

ICICI Bank’s share price fell by over 4% in early morning trade on Monday. This comes after the bank released its first-quarter earnings on Saturday, July 25.


However, ICICI Bank is not alone in this downtrend. HDFC Bank, State Bank of India (SBI), Punjab National Bank (PNB) and other banking stocks are in the red as well.


Source: Market prices as of 10:30 am

According to analysts, even though ICICI Bank’s overall moratorium book declined from 30% to 17.5% in the last three months, the overall share is still higher than its peers.

However, the fact that its gross bad loans fell to a 5-year low should have been a reason to celebrate. Even the brokerages expect the stock to rise anywhere between 26% and 29% in the next year. But the market is in a totally different mood.


ICICI Bank has also increased its provisions in anticipation of what lies ahead once the Reserve Bank of India (RBI) moratorium comes to an end on August 31. It has set aside ₹5,550 crore ($735 million) for the impact of the coronavirus pandemic, with its total provisions amounting to ₹ 8,275 crore ($1.1 billion).

SEE ALSO:
Azim Premji, at 75, would have been India's second richest man but he gave up a lot

RIL, Tech Mahindra earnings, options expiry and geopolitical events – top things that will move Sensex and Nifty 50 this week

Tech Mahindra likely to be the worst-hit of all the Indian IT services giants in first quarter