Five out of 10 cos add over Rs 1.13 trillion last week
In the last week, the 5 out of 10 companies added Rs 1,13,117.17 crore to their total market valuation.
ICICI Bank Ltd became the fifth Indian company and the second bank to surpass Rs 8-lakh-crore market capitalisation for the first time on Monday.
The shares of the private sector lender rallied over 4 per cent on strong earnings. The stock hit a record high of Rs 1,160 on the BSE, up 5 per cent. Later, it was trading at Rs 1,157 on the BSE, up 4.5 per cent from its previous close, while the benchmark Sensex rose 1.11 per cent to 74,549 points.
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For Q4 FY24, ICICI reports a net profit of Rs 10,708 crore, up 20 per cent from last year. The growth was driven by robust advances and reduced credit costs, despite margin pressure.
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The bank achieved an ROA of 2.4 per cent in FY24, reflecting strong performance across the board.
The net interest income (NII) rose 8 per cent to Rs 19,093 crore in Q4 FY24, surpassing estimates of Rs 18,958 crore. While gross NPA decreased to 2.16 per cent from 2.81 per cent YoY.
In terms of net NPA, it fell to 0.42 per cent from 0.48 per cent on-year. Deposit growth at 20 per cent outpaced advances, led by a 28 per cent rise in term deposits.
Although current account savings account (CASA) growth was subdued at 10 per cent YoY due to higher term deposit mobilisation. Domestic NIM moderated to 4.4 per cent in Q4 FY24 from 4.9 per cent a year back, maintaining the full-year NIM at the FY23 levels.
The research firm Emkay said ICICI Bank remains our preferred pick in the banking space, given its superior returns profile , top-management credibility, and strong capital/provision buffers.
Further, JM Financial in a note said, “We believe ICICI Bank firmly remains on a path to deliver +2.3/18.5 per cent average
(Return on equity/ return on assets)RoA/ RoE over FY25-26, aided by asset quality being in good shape, and continued growth momentum, while margins expected to moderate slightly. ICICI bank has continued to deliver a best-in-class return profile among its larger private peers which will help it retain its valuation premium.”
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