New Delhi: Shares price of private lender ICICI Bank (ICICIBANK) increased by 1.39 per cent on Monday, giving a slight relief to the firm. India’s second largest private sector lender recorded a strong set of quarterly numbers over the weekend.

It should be noted that the stock increased by Rs 12.4 or 1.39 per cent, which was earlier recorded at Rs 944.8 a piece on the BSE. For the second quarter of FY24, ICICI Bank informed about 35.8% YoY rise in its net profit to Rs 10,261.

With this, net interest income (NII) of the bank increased to Rs 18,308 crore by 23.8% YoY, while the net interest margin (NIM) also rose to 4.53% in Q2FY24 from 4.31%, YoY.

During the quarter, ICICI Bank’s provisions decreased to ₹583 crore, a significant drop from Rs 1,645 crore in the same period last year and Rs 1,292.4 crore in the previous quarter. The bank’s performance in the September quarter exceeded the expectations of market experts, aligning with the growth trajectory they had anticipated.

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The bank’s results surpassed market estimates in all aspects except for the net interest margin (NIM), which contracted more than expected, reaching 4.53 percent. ICICI Bank also demonstrated an improvement in asset quality, with gross non-performing assets (GNPAs) accounting for 2.48 percent of total loans during the July-September period, as opposed to 2.76 percent in the previous quarter.

What Brokerages See?

Morgan Stanley has given ICICI Bank an ‘overweight’ rating with a price target of Rs 1,350 after the bank’s earnings report. They anticipate that the bank’s margins will stay higher than pre-COVID levels, even as deposit rates increase, thanks to an improved loan portfolio and careful pricing. According to the brokerage, their target implies a 44.8% increase from the previous closing price.

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JP Morgan, too, has categorised ICICI Bank in ‘overweight’ category with a price target of Rs 1,150. The brokerage expects upside of 23.3% from Friday’s closing price.

Goldman Sachs and Jefferies have given ICICI Bank ‘Buy’ category. While Jefferies raised its price target from Rs 1,240 to Rs 1,250; and that of Sachs has been set at Rs 1,155.