ICICI stock gains nearly 11% on results

Mumbai: Shares of ICICI Bank rose 10.8% to Rs 841 on Monday after the private lender reported better-than-expected results over the weekend, which led to the

bank

being re-rated by

analysts

.

ICICI

added over Rs 56,000 crore to its market cap during the day to end at over Rs 5.8 lakh crore, contributing the most to the sensex’s 145-point gain.

“Be it margins, asset quality, current accounts & savings accounts, balance sheet growth, earnings growth and, finally, return on assets (RoA) — ICICI has done a brilliant job under

Sandeep Bakhshi

,” said Macquarie Capital research analyst

Suresh Ganapathy

. The private lender’s retail loans haves grown nearly three times faster than the industry at 19%. Its bad loans have been at the lowest level since 2014.

“What is encouraging is that ICICI continues to scale new heights of profitability every quarter. Margins at 4% were the highest seen in the history. Improvement quarter-on-quarter was driven by falling cost of deposits and lower interest reversals. Consequently, RoA (annualised) for the quarter stood at 1.8%,” said Ganapathy in a note.

An analyst report by Emkay Global Financial Services said, “Corporate growth should revive soon too. ICICI Bank, armed with its strong product offerings, franchise network and superior digi-banking platform, should deliver better credit growth and thus core profitability as well.”