Vikas Khemani of Edelweiss Capital told CNBC-TV18, "ICICI Bank is one of our top picks and the reason being in last couple of years, the management has sort of done a great job in terms of improving the CASA profile. They are also getting into scaling up the retail lending part. So, ICICI Bank has been one of the cheapest private sector banks.”
He further added, "As they continue with their improvement in the matrices in terms of cost income ratio, return on equities (RoEs) and return on asset ratios, I think market will sort of take a note of that. So we remain very positive."
"Obviously right now there are short-term clouds in terms of some of the larger exposure to some of the groups and what will they lead to in terms of increase in the non-performing assets (NPAs). But if you can ignore next couple of quarters because one is not sure how it will pan out, we have taken a positive or optimistic view of asset quality at this point in time given the pricing of the stock," Khemani said.
He further said, "So we have taken that view, but we think that this stock again is one of the largecaps which could potentially give very significant return, even it can outperform Nifty by a far margin."
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