The ICICI Bank on Wednesday became the fifth Indian firm to cross-market capitalisation of Rs 9 lakh crore for the first time. Notably, the private lender’s shares have rallied over 30% so far in 2024.
The stock hit a record high of Rs 1,295 on BSE today, up 2% from the previous close, with mcap at Rs 9.1 lakh crore.
The ICICI continued to deliver strong core operating performance despite macroeconomic challenges.
The bank has maintained solid business momentum across various segments, with management optimistic about robust deposit inflows to drive credit growth in the coming quarters.
In terms of its recent performances, in Q1FY25, the bank’s net interest income (NII) rose 7.3% YoY and 2.4% QoQ to Rs 19,553 crore, 1.3% below estimates.
Pre-Provision Operating Profit (PPOP) grew 13.3% YoY and 6.6% QoQ to Rs 16,025 crore. In the same quarter, the bank’s NII increased by 28.8% YoY but dropped 24.0% QoQ.
Profit after tax jumped 14.6% YoY and 3.3% QoQ to Rs 11,059 crore, 2.8% above estimates, driven by slightly higher-than-expected operating profits.
It is worth mentioning here that recently, analysts expect ICICI Bank to continue investing in branch expansion and digital banking, with a stable cost-to-income ratio supported by healthy revenues in FY25E/FY26E.
The bank is well-capitalized to seize credit opportunities, and analysts believe its business momentum will support superior return ratios.