ICICI Bank becomes 15th most valued bank globally as m-cap breaches $100-billion mark

ICICI Bank has reported strong earnings, boasting a net interest margin (NIM) of 4.6 percent, higher than HDFC Bank's 3.4 percent.

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26 Aug, 2025 12:21

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ICICI Bank has surpassed the $100-billion valuation mark for the first time, becoming the 15th largest lending entity globally and is now within striking distance of Citibank and China Merchant Bank.

Data from Bloomberg shows that ICICI Bank, which is the India’s second-largest bank by market capitalisation, is at $102.72 billion in terms of valuation, a tad behind Citigroup Inc’s $117.40 billion and China Merchants Bank, which has a market capitalisation of $118.10 billion.

HDFC Bank, which is the largest Indian bank in terms of market capitalisation, is at the 9th position with a valuation of $154.43 billion. SBI is the third Indian bank in the list of top 20 banks, occupying the 17th slot.

In fact, the top 20 global banks in terms of valuations include five from China, four from the US, three from India, two each from Canada and Japan with one each from Russia, Saudi Arabia, Australia and UK.

ICICI Bank now boasts a higher market capitalisation than many other popular and well-known banking entities like Toronto Dominion Bank (Canada), Al Rajhi Bank (Saudi Arabia), Sumitomo Mitsui Financial Group (Japan), Sberbank of Europe, DBS Group Holdings, National Australia Bank, Banco Santander (Spain), Bank Central Asia (Indonesia), and BNP Paribas among others.

Interestingly, the current price-to-book ratio is higher than that of its global peers, which analysts attribute to the growth prospects unique to India, suggesting that ICICI Bank tends to trade at premium valuations on account of these prospects.

The Bloomberg data takes into account only those banks that accept deposits and provide loans. In other words, investment banking majors would not make the cut in this set of data.

Currently, JPMorgan Chase is the world's largest bank by market cap with a valuation of $572 billion. It is followed by Bank of America at $307 billion and Industrial and Commercial Bank of China at $262 billion.

Further, Agricultural Bank of China (ABC) is at the fourth position followed by Wells Fargo & Co, China Construction Bank (CCB), Bank of China, HSBC Holdings, HDFC Bank, Royal Bank of Canada (RBC), Commonwealth Bank of Australia (CBA), Mitsubishi UFJ Financial Group (MUFG), China Merchants Bank and Citigroup Inc.

ICICI Bank has reported strong earnings, boasting a net interest margin (NIM) of 4.6 percent, higher than HDFC Bank's 3.4 percent.

It also maintains a lower credit-to-deposit (CD) ratio of 82.3 percent compared to HDFC Bank's 105 percent, along with a superior return on assets (ROA). Analysts believe that with ICICI Bank's robust profitability and growth potential, there's a possibility of further increasing its valuation premium over HDFC Bank.

In 2024, ICICI Bank's stock surged nearly 20 percent. With an impressive ROA of 2 percent and a noteworthy return on equity (ROE) of 18.8 percent in FY24, the highest among global banks, analysts find the stock attractive.

ICICI Bank

While earnings growth for ICICI Bank is expected to stabilise in FY25, there remains potential for its valuation multiple to be reassessed upwards. Overall, the strong FY24 earnings of ICICI Bank highlight significant progress, positioning it as a favourable choice for medium to long-term investors, according to analysts.

Analysts at Jefferies foresee ICICI Bank undergoing further re-rating due to its promising growth prospects and attractive valuations compared to peers. They have upgraded their FY25/26 EPS estimates by 4 percent, maintaining an 'overweight' rating with a target price of Rs 1,300 per share.

Nomura expects ICICI Bank to achieve a 13 percent PAT CAGR from FY24 to FY26 following strong Q4FY24 results. They have issued a 'buy' recommendation with a target price of Rs 1,335 per share.

According to Bloomberg data, ICICI Bank currently has no 'sell' calls, with 48 'buy' calls and 3 'hold' recommendations.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.