ICICI Bank Reaches $100 Billion Market Cap Milestone

ICICI Bank Limited, on 25 June 2024, became the sixth Indian firm to reach a market capitalization of $100 Billion(approx. Rs.8.4 Lakh crore). With this announcement, ICICI Bank became the second-largest bank in India by market capitalization, following HDFC Bank. The other 5 Indian companies are Reliance Industries Limited (Rs. 20.21 Lakh Crore), Tata Consultancy Services (Rs. 13.93 Lakh Crore), HDFC Bank (Rs. 13 Lakh Crore), Bharti Airtel (Rs. 8.62 Lakh Crore) and Infosys (Rs. 6.39 Lakh Crore).

ICICI Bank’s Financials:

In Q4FY24, ICICI Bank reported a standalone net profit of Rs. 10,707.5 Crore, a 17.4% YoY increase from Rs. 9,121.9 Crore, recorded in the previous year. The bank’s net interest income for the quarter grew to Rs. 19.092.8 Crore from Rs. 17,666.8 crores a year ago. A brokerage firm noted that the bank is likely to emphasize quality underwriting and is committed to leveraging superior technology to enhance customer acquisition. The brokerage firm also expects the bank’s Net Interest Margin (NIM) to remain stable in the near term, while its asset quality remains robust, with credit costs expected to normalize gradually. It also added that the Bank is leading toward sustainable growth, with healthy deposit inflows.

ICICI Bank’s Stock Performance

Post announcement on 25 June, the bank’s share price grew by 2% intraday. The stock traded at Rs.1196.45 in the afternoon, up 2.25% from the previous close. This gain marked a 12% increase from its lows on 4 June, the day of the general election results. This also led the stock of ICICI to outperform NIFTY’s 8% return during the same period and matched the gains made by the sector index BANKNIFTY. Over the past year, ICICI Bank’s share price has increased by nearly 29%, surpassing the Nifty 50’s 27% gain and the BANKNIFTY’s 20% gain. 

Conclusion:  Notably, it took 13 years for ICICI Bank to add $25 billion in market capitalization and reach the $50 billion mark in December 2020. Ten months later, it crossed the $75 billion mark, and three years later, it achieved the $100 billion milestone. This shows that with constant development of products and services, the company has shown promising results.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.