Shares of ICICI Bank gained 3 percent at the open on the NSE on January 23 after the bank reported a 23.5 percent increase in net profit for Q3FY24 on January 20. At 9:20am, the stock was trading at Rs 1042.40.
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ICICI Bank has reported a net profit of Rs 10,271.54 crore for Q3FY24 against Rs 8,312 crore a year ago. Its gross non-performing asset (NPA) stood at 2.3 percent, a decline from 3.07 percent in the previous fiscal and net NPA stood at 0.44 percent against 0.55 percent in Q3FY23. Net interest income (NII) for the reporting period grew by 34.6 percent year-on-year to Rs 16,465 crore in Q3FY23.
What the brokerages say
According to analysts at Morgan Stanley, the bank continues to deliver strong balance sheet growth for both loans and deposits and expects the company tp remain well above the pre-Covid levels. The brokerage expects profitability to remain strong. Although the RoA will likely moderate as margins move lower, the brokerage expects it to remain above 2 percent. Morgan Stanley has an 'overweight' call with a target price of Rs 1,350.
Brokerage firm Macquarie has an 'outperform' call with a target price of Rs 1,190. Q3 net profit was in-line with high provisions and opex (operating income) offset by high fee income.
CLSA has a 'buy' call on the stock with a target price of Rs 1,300. According to the brokerage, business performance is in line across all parameters and the stock is "ripe for rerating". According to the brokerage, the loan growth remains healthy with some calibration in unsecured loans.
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