ICICI Bank emerges as top pick in private banking

ICICI Bank has bagged about 48 ‘buy’ calls from brokerages and just 3 ‘hold’ calls in April, thanks to its robust quarterly performance.

Amidst challenges faced by HDFC Bank and Kotak Mahindra Bank, ICICI Bank has emerged as the top choice in the private banking sector this April. 

The bank’s strong quarterly performance has garnered significant attention from analysts and investors alike.

Bullish Recommendations for ICICI Bank

Moneycontrol’s Analyst Tracker reveals that ICICI Bank received approximately 48 ‘buy’ calls from brokerages in April, along with only 3 ‘hold’ calls. 

This contrasts with HDFC Bank, which received 45 ‘buy’ calls and 5 ‘hold’ ratings during the same period. The overwhelming ‘buy’ recommendations for ICICI Bank reflect confidence in its future prospects.

Continued Growth Momentum

ICICI Bank’s robust quarterly results have reinforced analysts’ bullish stance on the lender. 

Geojit Financial Services and Prabhudas Lilladher are among the brokerages that have reiterated their ‘buy’ calls on ICICI Bank, citing factors such as sustained growth momentum in advances and deposits, technological prowess, and extensive reach.

Optimistic Outlook

Analysts at Geojit Financial Services emphasized positive triggers such as healthy asset quality, adequate capitalization, and digital transformation, which bode well for ICICI Bank’s future performance. 

Prabhudas Lilladher highlighted the bank’s improved balance sheet and raised the target price to Rs 1,450 per share.

Key Financial Highlights

ICICI Bank’s share of retail and SME loans increased to 75.4 percent in FY24, while its loan-to-deposit ratio reduced to 83.8 percent, indicating strong liquidity management. 

The bank’s liquidity coverage ratio stood strong at 123 percent, further reinforcing its financial stability.

Impressive Performance Metrics

In FY24, ICICI reported a 19.5 percent year-on-year increase in net interest income to Rs 74,305 crore and a 28.2 percent year-on-year jump in profit-after-tax to Rs 40,888 crore. 

These impressive performance metrics underscore ICICI Bank’s position as a leader in the private banking sector.

As ICICI Bank continues to demonstrate resilience and agility in navigating market challenges, it remains a top pick for investors seeking exposure to India’s private banking landscape.