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ICICI Bank News: With its shares rising more than 4% on the back of solid results, private sector lender ICICI Bank Ltd. became the second bank and the fifth Indian firm to reach the Rs 8 lakh crore market capitalization threshold for the first time.

On April 29, the stock rose 5% to a record high of Rs 1,160 on the BSE. It was up 4.5 percent from its previous close to trade at Rs 1,157 on the BSE at 2:10 PM, while the benchmark Sensex gained 1.11 percent to 74,549 points.

Thus far, this milestone has been reached by Reliance Industries, TCS, HDFC Bank, Infosys, and Bharti Airtel. With a market capitalization of Rs 20.4 lakh crore, RIL continued to be the most valuable company in India. TCS and HDFC Bank came next, with mcaps of Rs 15. lakh crore and Rs 9.6 lakh crore, respectively. The respective market caps of Infosys and Bharti Airtel are Rs 8.16 lakh crore and Rs 8.1 lakh crore.

ICICI Bank Growth and Stats

Despite margin pressure, the lender prospered, earning a Q4 FY24 net profit of Rs 10,708 crore, up 20% from Q4 FY23, thanks to strong advances and lower credit expenses. With a 2.4 percent return on assets (ROA) in FY24, ICICI Bank demonstrated excellent overall performance.

“We think ICICI Bank is still on track to achieve +2.3 percent/18.5 percent average RoA/RoE for FY25–26, helped by strong asset quality and ongoing growth momentum, with somewhat moderated margins anticipated. In its note, JM Financial stated that ICICI Bank has continued to provide a best-in-class return profile among its larger private rivals, which will help it keep its valuation advantage.

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In Q4 FY24, net interest income (NII) increased by 8% to Rs 19,093 crore, above predictions of Rs 18,958 crore. Net NPA dropped to 0.42 percent from 0.48 percent on-year, while gross NPA dropped to 2.16 percent from 2.81 percent YoY. Although CASA growth was muted at 10% YoY due to increased term deposit mobilization, deposit growth at 20% surpassed advances, driven by a 28% increase in term deposits. The domestic net income margin (NIM) decreased from 4.9 percent in Q4 of FY23 to 4.4 percent in Q4 of FY24, keeping the total NIM at FY23 levels.

According to Emkay, ICICI Bank continues to be our top choice in the banking sector because of its solid capital/provision buffers, credible top management, and exceptional returns profile.

“ICICI Bank’s top line grew by single digits throughout the quarter, driven mostly by a falling profit due to rising funding costs. Religare Broking stated in a recent note that “its advances and deposits are growing at a healthy pace and in a sustained manner which is aiding the bank to grow its business with robust asset quality.”