ICICI Bank’s market cap has surpassed Rs 5 lakh cr

An Overview

ICICI Bank’s stock has surpassed the ₹5 trillion market capitalization record, with a gain of nearly 35% so far this year. The stock closed at 719.20 per share on the BSE on Wednesday, up 0.05 percent from its previous finish, with a market capitalization of a little under ₹5 trillion.

Analysts believe that ICICI Bank has established itself as a growth leader and that with improved return ratios and trustworthy management, it would be able to close the value gap with rivals such as HDFC Bank. The Reserve Bank of India (RBI) has granted a two-year extension of Sandeep Bakhshi’s term as managing director and chief executive.

RBI’s two-year term extension, rather than the usual three-year extension, is consistent with the legitimate board/shareholder ratification of his appointment for a five-year period from October 15, 2018, to October 23, 2023. As a result, unlike RBL Bank and DCB Bank, it should not be viewed as a short-term extension by RBI, according to analysts.

ICICI Bank has greater room for expansion in Mutual Funds

According to data provided by Prime Database, ICICI Bank has become the largest holding for domestic mutual funds in terms of value, reflecting the latest dominance of business-focused financing over retail borrowers.

Mutual funds now have 5.75 percent of their equity AUM invested in ICICI Bank. According to data published by Prime Database, HDFC Bank now accounts for 5.31 percent of the equity AUM of mutual funds. The change of guard is yet another example of the scales of fate tipping in ICICI Bank’s favour after nearly a decade of dominance by HDFC Bank.

Further Key Takeaways

When it comes to returns over a one-year and five-year time horizon, ICICI Bank shares have dominated. The stock of ICICI Bank has increased by 87 percent in the last year and by 199 percent in the last five years.

Chief Executive Officer Sandeep Bakshi has said that the bank’s loan book and corporate governance have been cleaned up and that the bank’s energies have been refocused on becoming the growth machine it was in the 2000s.

ICICI Bank posted a NIM of 3.89 percent in the quarter ended June, compared to HDFC Bank’s 4.1 percent. Factors, such as investors’ hope that corporate credit demand will resume shortly, fueled the stock’s rise in 2021. Fund managers and investors in the country are counting on a resurgence in private capital investment. The premise is that the economy’s strong comeback to demand following the pandemic, as well as corporations’ recent deleveraging of balance sheets, should create a platform for capacity expansion.

There hasn’t been enough information to establish that business investment is increasing thus far. This is because the economy’s credit impulse is sluggish, and capacity utilisation is still well below the point where businesses can consider expanding.

Since December, ICICI Bank has acquired over 1.3 million credit cards

According to the most recent RBI data, HDFC Bank currently has 14.82 million credit cards on the market, down from 15.38 million in November 2020. ICICI Bank, on the other hand, was the greatest gainer in the December-June period, adding over 1.32 million credit cards, bringing its total credit card outstanding to 11.03 million in June 2021, up from 9.71 million in November 2020.

FAQs

What is ICICI Bank’s full name?

Before changing its name to ICICI Bank, the bank was known as the Industrial Credit and Investment Corporation of India Bank.

Is ICICI Bank a public or private bank?

ICICI Bank is India’s leading private bank. At the end of September 2020, the Bank’s total assets were worth Rs. 14.76 trillion.