{"id":133391,"date":"2022-08-18T09:17:34","date_gmt":"2022-08-18T13:17:34","guid":{"rendered":"https:\/\/44.250.171.167\/?p=133391"},"modified":"2022-08-18T09:17:35","modified_gmt":"2022-08-18T13:17:35","slug":"reason-behind-the-bull-run-of-icici-bank-limited","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/reason-behind-the-bull-run-of-icici-bank-limited\/","title":{"rendered":"Reason behind the bull run of ICICI Bank Limited"},"content":{"rendered":"\n<p>Post the Pandemic lows of economic activity, the recent fiscal year marked a strong economic recovery. The bank has competently positioned itself in terms of its holdings. With its limited exposure to volatile industries and controllable amount of SME or unsecured retail loans, the institution is in a stronger position relative to its peers. The bank\u2019s asset quality has exhibited resilience and a healthy rate of improvement.<\/p>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter\"><a href=\"https:\/\/lh6.googleusercontent.com\/1B22kdx55Ol3tlpptJJa9xcqFVqwsQyCXEDS66Lms7cSOBN14JK3LXEgw_zU7R-0CuoxcJU60YUKsJGPTyBzKG1RAsUeD9fCq-reDpDzWj3yQIwqr2Mknp5jvfHxs7Wn6IP2-LOxxXCUAEkBX5qq3pQ\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/1B22kdx55Ol3tlpptJJa9xcqFVqwsQyCXEDS66Lms7cSOBN14JK3LXEgw_zU7R-0CuoxcJU60YUKsJGPTyBzKG1RAsUeD9fCq-reDpDzWj3yQIwqr2Mknp5jvfHxs7Wn6IP2-LOxxXCUAEkBX5qq3pQ\" alt=\"\" \/><\/a><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter\"><a href=\"https:\/\/lh6.googleusercontent.com\/S9fwNfEjJ2hPO87munF90rBzlNBQXO1iFgA0gucW2RzzgD9pYdgiw8Gd3eWoJeLoxW0SJHXxRSeqqve7lXPky0M_LTOOEpI8YKcVW5TikrinY6JjExyvkrZZpLjMFTCpGmFyUR7_GzoofbLzbRr3eHU\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/S9fwNfEjJ2hPO87munF90rBzlNBQXO1iFgA0gucW2RzzgD9pYdgiw8Gd3eWoJeLoxW0SJHXxRSeqqve7lXPky0M_LTOOEpI8YKcVW5TikrinY6JjExyvkrZZpLjMFTCpGmFyUR7_GzoofbLzbRr3eHU\" alt=\"\" \/><\/a><\/figure><\/div>\n\n\n\n<p>The Net NPA ratio consistently falling and the Provision Coverage Ratio consistently increasing are a testament to the increased asset quality of the bank.<\/p>\n\n\n\n<p>At the end of June 2022, the company&#8217;s business had grown at an exponential pace of 17% year over year, with loans seeing an improvement to 21%. Additionally, the domestic advance book had grown at a faster rate of 22% year over year, while the foreign advance book had grown at a faster rate of 14%.<\/p>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter\"><a href=\"https:\/\/lh6.googleusercontent.com\/OewuAXNwpPfHOlZTBMTIQmIpVn4fwV2NKBOaB-90E8-NECHGlFkHUihZ0v2ZDw94f3jVoTdhm0XRxuUQv9ZJjTKOev9nhvyo6cGZM3Z7-a7oyB3zrbqX_gF75ByUr0HtmT9awbn4dqGAR4wnW4VwtZA\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/OewuAXNwpPfHOlZTBMTIQmIpVn4fwV2NKBOaB-90E8-NECHGlFkHUihZ0v2ZDw94f3jVoTdhm0XRxuUQv9ZJjTKOev9nhvyo6cGZM3Z7-a7oyB3zrbqX_gF75ByUr0HtmT9awbn4dqGAR4wnW4VwtZA\" alt=\"\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Furthermore, the bank has witnessed increased operating efficiency with the increase in the CASA Ratio. At the end of June quarter, CASA deposits climbed 16% year over year while term deposits increased 11%. The bank&#8217;s CASA ratio increased to 46.85% at the end of Q1FY23 from 45.90% a year ago, while falling from 48.70% a quarter earlier.<\/p>\n\n\n\n<p>Net Interest Margins (NIMs), which denotes the surplus of interest income received over the paid interest income, has improved to 4.01% level. Domestic Net Interest Margins are already at high levels of 4.14% due to increased financial stability and a healthy credit to deposit ratio but the international NIMs have remained to low levels of 0.33%. However, with the international interest hikes taking place international NIMs might see an improvement.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Regarding Asset Multiples:<\/strong><\/h4>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>A comparison of global banks across RoA (return on assets) and PB (price to book) in FY23\/CY22 shows that ICICI Bank offers among the best risk\/reward. It trades at 1.1x on PB\/RoA, as its one-year forward core banking PB of 2x is well justified by its RoA of 1.8-1.9 percent, which also has a potential upside risk,\u201d <\/p><cite>Jefferies, Global brokerage house<\/cite><\/blockquote>\n\n\n\n<p>To further examine the bank&#8217;s results, check out this <a href=\"https:\/\/44.250.171.167\/icici-bank-limited-q1-fy23-earnings-conference-call-insights\/\" target=\"_blank\" rel=\"noreferrer noopener\">link<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Post the Pandemic lows of economic activity, the recent fiscal year marked a strong economic recovery. The bank has competently positioned itself in terms of its holdings. With its limited exposure to volatile industries and controllable amount of SME or unsecured retail loans, the institution is in a stronger position relative to its peers. The [&hellip;]<\/p>\n","protected":false},"author":1885,"featured_media":133392,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,1,6350],"tags":[151,10097],"class_list":["post-133391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-finance-stocks","category-trending-stocks","tag-banking","tag-financial-service"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-1212039515.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":155752,"url":"https:\/\/alphastreet.com\/india\/esaf-small-finance-bank-ipo-unlocking-growth-potential\/","url_meta":{"origin":133391,"position":0},"title":"ESAF Small Finance Bank IPO: Unlocking Growth Potential","author":"Divyansh_Kasana","date":"November 3, 2023","format":false,"excerpt":"ESAF Small Finance Bank, one of the prominent players in India's microfinance and small finance banking sector, is set to make its debut on the stock exchanges. The IPO, a book-built issue, aims to raise Rs 463.00 crores, comprising a fresh issue of 6.51 crore shares amounting to Rs 390.70\u2026","rel":"","context":"In &quot;IPO&quot;","block_context":{"text":"IPO","link":"https:\/\/alphastreet.com\/india\/category\/ipo\/"},"img":{"alt_text":"SHARDAMOTR Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":131365,"url":"https:\/\/alphastreet.com\/india\/hdfc-bank-limited-q1-fy-23-research-tear-sheet\/","url_meta":{"origin":133391,"position":1},"title":"HDFC Bank Limited Q1 FY 23 Research Tear Sheet","author":"sreerupa","date":"July 20, 2022","format":false,"excerpt":"HDFC Bank Limited\u00a0is an Indian banking and financial services company. It has its headquarters in Mumbai, Maharashtra. It was incorporated on August 1994. It was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank. HDFC Bank has a banking\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"Research Summary","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":146340,"url":"https:\/\/alphastreet.com\/india\/earnings-creditaccess-grameen-limited-nse-creditacc-q4fy23-results-out-total-income-rises-29-yoy\/","url_meta":{"origin":133391,"position":2},"title":"Earnings | CreditAccess Grameen Limited (NSE: CREDITACC): Q4FY23 Results Out; Total Income rises 29% YoY.","author":"Divyansh_Kasana","date":"May 16, 2023","format":false,"excerpt":"CreditAccess Grameen Limited is a registered non-deposit accepting NBFC - Microfinance Institution regulated by the Reserve Bank of India. The company specializes in offering microfinance services to women who are organized into Joint Liability Groups. These services are aimed at empowering women by providing them access to credit for various\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-10-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-10-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-10-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-10-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-10-1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-10-1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145174,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-equitas-small-finance-bank-limited-for-q4-fy23\/","url_meta":{"origin":133391,"position":3},"title":"Earnings Summary Of Equitas Small Finance Bank Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 5, 2023","format":false,"excerpt":"Equitas Small Finance Bank Limited is a scheduled commercial bank in India, which was established in 2007 as Equitas Micro Finance Limited. In 2016, it received the Small Finance Bank license from the Reserve Bank of India and became a small finance bank. The bank provides a range of banking\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":147275,"url":"https:\/\/alphastreet.com\/india\/earnings-dcb-bank-limited-nse-dcbbank-q4fy23-results-out-total-income-rises-26-yoy\/","url_meta":{"origin":133391,"position":4},"title":"Earnings | DCB Bank Limited (NSE: DCBBANK): Q4FY23 Results Out; Total Income rises 26% YoY.","author":"Divyansh_Kasana","date":"May 25, 2023","format":false,"excerpt":"DCB Bank Limited is a modern private sector bank that operates with a network of 352 branches across 19 states and 3 union territories in India. As a scheduled commercial bank, it is subject to the regulations and oversight of the Reserve Bank of India. DCB Bank is known for\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-42.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-42.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-42.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-42.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-42.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-42.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145088,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-federal-bank-limited-for-q4-fy23\/","url_meta":{"origin":133391,"position":5},"title":"Earnings Summary Of Federal Bank Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 5, 2023","format":false,"excerpt":"Federal Bank Limited is a private sector bank in India headquartered in Aluva, Kerala. It was established in 1931 and is licensed under the Banking Regulation Act of India. The bank operates in four segments: Treasury Operations, Wholesale Banking, Retail Banking, and Other Banking Operations. Federal Bank Limited reported Total\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-4-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-4-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-4-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-4-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-4-1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-4-1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/133391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1885"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=133391"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/133391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/133392"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=133391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=133391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=133391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}