ICICI Bank share price zooms high after Q2 earnings, here’s what brokerages say

Nifty Bank index today rose to a new high following strong gains in ICICI Bank shares. On the Bombay Stock Exchange (BSE), shares of ICICI Bank soared to an all-time high of Rs 859 after the bank reported strong results for the quarter ending September 2021.

ICICI Bank’s stock continued to rise today, reaching a new high of Rs. 859 per share, after the lender announced an almost 30% increase in net profit in the second quarter to a new high, boosted by robust loan growth. In the September quarter, the private sector lender’s net income increased to Rs 5510 crore.

During the quarter under review, net interest income (NII) increased by 25% YoY to Rs 11,690 crore, while net interest margin (NIM) increased to 4% from 3.57 percent in the previous quarter and 3.89 percent in the previous June quarter.

On the BSE, the stock began 5% higher at Rs 800, vs a previous close of Rs 759.10. The company’s market capitalization increased to Rs 5,93,858.87 crore. The stock is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

In the three months to September, ICICI Bank’s bad loan ratio fell to 4.82 percent, down from 5.15 percent the previous quarter. In the September quarter, the bank set aside a total of 2713 crore in provisions, down from a total of 2852 crore three months prior.

CLSA has kept its ‘Buy’ recommendation and boosted the target price to Rs 1,100 per share from Rs 1,000. Recent asset quality trends, according to the brokerage house, indicate that loan costs will likely undershoot.

On higher NIMs, Credit Suisse lifted the target price to Rs 900 per share and raised FY22-24 EPS projections by 6-9 percent.

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