ICICI sheds 10%+ in a week as investors seek safer bank stocks

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICI Bank shares have plummeted over 10 percent in just a week since it reported a steep 76 percent dip in fourth quarter profit, due to exceptional provisioning of Rs 3,600 crore.However, even as most broking houses have downgraded earnings estimate for the bank, they continue to hold a positive view on the stock over the long term.They concede though that shares could stay pressured in the near future due to negatives such as pre-provision operating performance (PPOP) weakness, expected high provisions on account of potential slippages, higher credit costs and lower fee income. "While near-term stress should remain high, and hence stock performance could also remain weak, we maintain our Buy rating,” Nomura said in a note, adding, “Stay PUT, valuations discounting the pain.”

In an interview with CNBC-TV18, Gaurang Shah, VP, Geojit BNP Paribas Financial Services, said a tactical shift could be under way in banking stocks, with investors moving to other private sector banks such as Axis Bank, Kotak Mahindra Bank or HDFC Bank. "Investors are not willing to wait to see asset quality recover for the next two or three quarters for ICICI," he said.