INSUBCONTINENT EXCLUSIVE:
ICICI Bank share price surged to Rs 314 at day's high today.
Shares of ICICI Bank surged nearly 9 per cent
today to Rs 314.50 despite the private lender reporting its smallest quarterly profit in two years
ICICI Bank's net profit for its fiscal fourth quarter to March 31 almost halved to Rs 1,020 crore, which was mostly in line with
The Reserve Bank of India (RBI) in February did away with half a dozen loan restructuring schemes in a surprise move to hasten a clean-up of
near-record levels of soured loans and tightened some other rules, which has led to banks disclosing more bad loans in the March
quarter.Many brokerages retained their 'buy' rating on the stock citing a significant decline in the "drilldown" list of potential troubled
The bank's drilldown list i.e
below investment grade exposure in key sectors identified earlier and promoter entities decreased from Rs 44,065 crore at March 31, 2016 to
Rs 4,728 crore at March 31, 2018, it said.Domestic brokerage Elara Capital has an "accumulate" rating on ICICI Bank shares, saying "loan
book cleansing approaching an end"
Another brokerage Edelweiss, which also has a "buy" rating on ICICI Bank shares said: "Upfront stress recognition, as anticipated, took the
sheen off ICICI Bank's otherwise operationally steady Q4." Edelweiss has a target price of Rs 370 on ICICI Bank shares.HDFC Securities has
to lower its net non-performing loan ratio to 1.5 percent in two years from 4.77 percent at the end of March
"We believe that since a lot of the stress has already been recognised, going forward, in fact, our focus will be on recovery and
resolution," she said.She also outlined other medium-term goals for the bank such as growing retail loans to more than 60 per cent of total
loans, bringing down overseas loans to less than 10 per cent, and boosting the provision coverage ratio of the bank to 70 per cent by March
2020.The new RBI rules on bad loans led to Rs 9,968 crore of bad loans being added to its pile in the March quarter, ICICI Bank said
Including other bad loans, the gross non-performing loan ratio shot up to 8.84 per cent from 7.82 per cent at the end of December
The net NPA ratio was 4.77% at March 31, 2018.Domestic loans were up 15 percent year-on-year at the end of March, and the chief executive
said the aim would be to increase the overall domestic loan book by 15 per cent a year, with retail loans growing at above 20 percent until
March 2020.Last month, Axis Bank posted its first ever quarterly loss last month as its bad loans surged.At 12:43 pm, shares of ICICI Bank
were up 8 per cent to Rs 312 as compared to a marginal gain in Nifty.
