ICICI Bank Shares Reach All-Time High, Market Cap Surpasses ₹9 Lakh Crore
On Wednesday, ICICI Bank achieved a significant milestone by becoming the fourth Indian company to exceed a market capitalization of ₹9 lakh crore, following a remarkable share price increase of over 30% in 2024. The stock soared to an all-time high of ₹1,295 on the Bombay Stock Exchange (BSE), reflecting a 2% rise from the previous closing price, thereby reaching a market capitalization of ₹9.1 lakh crore.
The bank joins an elite group, previously achieved by Reliance Industries, Tata Consultancy Services, HDFC Bank, and Bharti Airtel.
This surge in ICICI Bank's stock comes amidst growing anticipation of potential interest rate cuts, with investors looking towards the upcoming Federal Reserve meeting, where a 25 to 50 basis point reduction is expected. The prospect of lower rates is believed to favor banks and non-banking financial companies (NBFCs), fueling positive sentiment in the market.
ICICI Bank’s stock performance has been robust, with shares rising nearly 30% in both the current and preceding calendar years. In just the past month, the stock has gained 9%, as reported by BSE analytics.
In its Q1 FY25 earnings, ICICI Bank reported a year-on-year increase of 7.3% in net interest income (NII), totaling ₹19,553 crore, though this was slightly below market expectations. The pre-provision operating profit (PPOP) saw a 13.3% YoY increase, amounting to ₹16,025 crore. Notably, profit after tax rose 14.6% YoY and 3.3% QoQ to ₹11,059 crore, exceeding analyst estimates by 2.8%, driven by stronger-than-anticipated operating profits.
Despite macroeconomic challenges, ICICI Bank demonstrated strong core operational performance, maintaining solid momentum across its various business segments. Analysts are optimistic about the bank's ability to sustain robust deposit inflows, which are crucial for supporting credit growth in the near future. Asset quality has remained stable, despite a seasonal uptick in slippages.
Looking ahead, analysts expect ICICI Bank to continue investing in branch expansion and digital banking initiatives, while maintaining a favorable cost-to-income ratio due to strong revenue projections for FY25E and FY26E. With a well-capitalized position, ICICI Bank is poised to capitalize on emerging credit opportunities, bolstered by its solid business momentum that is likely to yield superior return ratios.
