ICICI Bank stages a strong Q2 show; should you buy, sell or hold stock now?

ICICI Bank shares will take centre stage on Dalal Street on Monday after the country's second largest private sector lender reported a strong set of quarterly numbers.

ICICI Bank staged a strong performance for Q2. | Image: icicibank.com

ICICI Bank (ICICIBANK) shares gained on Monday after the country's second largest private sector lender reported a largely strong set of quarterly numbers over the weekend. The stock rose by as much as Rs 12.4, or 1.3 per cent, to Rs 944.8 apiece in intraday trade on BSE.

The stock settled 0.3 per cent weaker for the day at Rs 929.8 apiece owing to overall weakness in the market.

ICICI Bank Q2 results: A summary

On Saturday, ICICI Bank reported a 35.8 per cent year-on-year jump in net profit to Rs 10,261 crore for the July-September period with a 23.8 per cent rise in net interest income (NII) to Rs 18,307.9 crore.

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According to Zee Business research, the lender's quarterly net profit was estimated at Rs 9,530 crore and NII at Rs 18,250 crore.

ICICI Bank's provisions decreased 67.9 per cent on a year-on-year basis to Rs 528.6 crore, according to a regulatory filing.

The bank registered domestic loan growth of 19.3 per cent for the quarter ended September, as against the Zee Business analysts' estimate of 16-17 per cent.

The lender's results were better than Street estimates on all fronts except the net interest margin (NIM), which shrank more than expected to 4.53 per cent.

ICICI Bank recorded an improvement in asset quality, as reflected in its gross non-performing assets (GNPAs), or gross bad loans, at 2.48 per cent of its total loans for the July-September period as against 2.76 per cent for the previous quarter.

Its net non-performing assets (NNPAs) also came down, to 0.43 per cent from 0.48 per cent the previous quarter.

EDITOR'S TAKE | Results better than estimates on all parameters

Zee Business Managing Editor Anil Singhvi suggests buying ICICI Bank futures for targets of Rs 941, Rs 949 and Rs 955 with a stop loss at Rs 918.

The market wizard pointed out that the lender's RoA hit a lifetime high and its RoE scaled a nine-year peak while its asset quality turned out to be the best in nine years.

How brokerages are viewing ICICI Bank's Q2 results

According to Morgan Stanley, which maintained an 'overweight' rating on ICICI Bank with a price target of Rs 1,350 after the bank's earnings announcement, margin normalisation at the bank is expected to remain above pre-COVID levels even as deposit rates catch up fully, helped by an improved loan mix and disciplined pricing.

The brokerage's target suggests an upside of 44.8 per cent from the previous close.

Brokerage	Rating	Price target	Upside vs Friday's closing price (%)
Morgan Stanley	Overweight	Rs 1,350	44.8
JPMorgan	Overweight	Rs 1,150	23.3
Jefferies	Buy	Raised to Rs 1,250 from Rs 1,240	34.1
Goldman Sachs	Buy	Raised to Rs 1,155 from Rs 1,138	23.9
Macquarie	Outperform	Rs 1,190	27.6

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ICICI Bank Q2 results