ICICI Bank reported strong December quarter earnings over the weekend as its profit after tax grew by 25% on year to ₹6,194 crore ($833 million).- Brokerages say the stock price may rise up to 36% in the next one year.
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Profit after tax for the bank grew by 25% on year to ₹6,194 crore ($833 million) in October to December. The bank reported a 23% on year jump in net interest income (NII) at ₹12,236 crore
However, revenue is expected to remain under pressure as loan growth is still quite sluggish and the recovery is still not uniform, says analyst at Kotak Institutional Equities.
“Confidence on earnings delivery and high equity sanctity suggest ICICI is primed for the next cycle. Consistent delivery over the last few years reflects an impressive turnaround, setting a gold benchmark for financiers,” said analysts at Edelweiss.
Meanwhile, analysts at Kotak Institutional Equities said, “With each passing quarter we see growing investor comfort in the bank’s performance, fueled by fewer negative surprises on asset quality, growth and its operating metrics.”
Also, the bank has grown its credit card business quite well in the last one year when HDFC Bank was barred from selling new cards to clients from December 2020 to August 2021.
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