ICICI Bank Crosses Rs 5 Trillion Market Cap, Stands 2nd after HDFC Bank

Private lender ICICI bank has become the second lender in the country to cross the market cap of Rs 5 trillion. HDFC, India’s largest private lender holds first rank in this list. With this feat, ICICI Bank has become 7th company in the country to cross Rs 5 trillion market cap. The shares of ICICI bank opened at Rs 721.45 in early trade. However, at 1301 hours, the scrip of the private lender rose by 0.73 per cent, up 5.25 at 724.10. In this seven members club of companies having market cap over 5 trillion, ICICI is a new entrant, but Tata Consultancy Services, HDFC Bank, HDFC Ltd, Infosys have already crossed this 5 trillion mark. Currently, the market capitalisation of the private lender stands at 5.10 trillion. The bank deposits of the country’s leading lender grew at 21 per cent year-on year to Rs 932.522 crore. However, its domestic loans grew at 12 per cent in along with a 18 per cent growth in retail loan segment.

Riding on the back of lower provisions, In the first quarter of 2021, ICICI Bank’s June quarter net profit was up 52 per cent to Rs 4,747.42 crore. But the bank reported an increase in stress from the retail loans segment. In the fourth quarter of FY21, ICICI Bank Limited reported a 260 per cent growth which constitutes a three-fold jump in net profit to ₹ 4,402.62 crore from Rs 1,221.36 crore in the year ago period. The bank posted a net profit of ₹ 4,940 crore in the preceding October-December quarter of fiscal 2020-21 Apart from the growth in its net profit, the bank also witnessed a growth of 17 per cent in net interest income to ₹ 10,431 crore during the quarter.

Recently, the apex bank approved the re-appointment of Sandeep Bakhshi as the managing director and chief executive officer of ICICI Bank, the private lender said in a regulatory filing on August 24. However, the re-appointment will come into effect on October 15, 2021, and the tenure will continue till October 3, 2023.

“The shareholders at the Annual General Meeting held on August 9, 2019 had already approved the appointment of Mr. Bakhshi for a period effective from October 15, 2018 up to October 3, 2023,” ICICI Bank stated in the NSE filing. The decision to re-appoint Bakhshi as the MD and CEO had received the nod of shareholders nearly two years ago, ICICI Bank said.

After the Reserve Bank of India imposed a ban on HDFC bank and barred it from issuing any credit card, in the fourth quarter of 2021, ICICI emerged as the biggest gainer by adding more than 1.32 million credit cards — taking its outstanding credit cards in the market to 11.03 million as of June 2021, against 9.71 million as of November 2020.

Commenting on the ICICI Bank crossing the 5 trillion market cap, Ravi Singhal, vice chairman, GCL Securities said, ” The reason behind this is the good retail and corporate finance balance book of the bank.” He also said that growth in infrastructure, upcoming festival season, when people are more inclined towards taking loans and these factors are buttressing the growth of the bank.” According to Singhal, government initiatives also helped the bank in continuing its growth story.

In the past as well as, the ICICI Bank has outperformed its peers. The stock has continued its uptrend. According to analysts expectations, this stock will to march upwards so traders should trade with a positive bias. Many analysists have put the immediate support in the range of Rs 690-Rs 700 while resistance is seen around Rs 735-Rs 740.