ICICI Bank Reaches $100 Billion Market Cap, Becomes 6th Indian Company to Achieve Milestone

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 25th June 2024 - 04:20 pm

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On June 25, ICICI Bank Ltd became the sixth Indian firm to reach a market capitalization of $100 billion (approximately ₹8.4 lakh crore) as the private sector bank’s share price rose over 2% intraday. The stock traded at ₹1,196.45 in the afternoon, up 2.25% from the previous close. ICICI Bank is the second-largest bank in India by market capitalization, following HDFC Bank.

Before ICICI Bank, only five Indian companies had a market capitalization exceeding $100 billion. Reliance Industries leads this list with a market capitalization of $235 billion, followed by TCS with a market value of $166 billion. 

With today's gain, ICICI Bank stock has risen nearly 12% from its lows on June 4, the day of the general election results. It has outperformed the Nifty’s 8% return during the same period and matched the gains made by the sector index Bank Nifty.

Over the past year, ICICI Bank share price has increased by nearly 29%, surpassing the NSE Nifty 50's 27% gain and the Bank Nifty's 20% gain. 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. 

The other Indian companies that have crossed $100 billion in market capitalization are Reliance Industries Ltd, Tata Consultancy Services, HDFC Bank, and Bharti Airtel. IT bellwether Infosys also reached a $100 billion market capitalization in January 2022 but has not maintained that level.

Earlier today, ICICI Bank announced that it will release its Q1 FY25 financial results on July 27. In the previous quarter that ended on March 31, ICICI Bank reported a standalone net profit of ₹10,707.5 crore, a 17.4% increase from ₹9,121.9 crore in the same period the previous year. Its net interest income for the January-March quarter grew to ₹19,092.8 crore from ₹17,666.8 crore a year ago.

The lender also declared a dividend of ₹10 per equity share with a face value of ₹2 each. ICICI Bank has experienced modest growth in its wholesale loans business, but its robust retail and SME lending business has helped it outperform the overall system credit growth.

This week, Motilal Oswal issued a 'buy' rating on ICICI Bank stock, citing strong loan growth, robust fee income, strong asset quality, and other factors. The brokerage set a target price of ₹1,350 per share, implying a 15% upside from the previous close.

Motilal Oswal noted that ICICI Bank is likely to emphasize quality underwriting. The bank's liability momentum remains strong, and it is committed to leveraging superior technology to enhance customer acquisition. The brokerage expects ICICI Bank's Net Interest Margins (NIMs) to remain stable in the near term, while its asset quality remains robust, with credit costs expected to gradually normalize.

The brokerage further added that ICICI Bank's transformation under competent management is leading to sustainable growth. "The bank is witnessing healthy deposit inflows, while a benign CD ratio (the lowest among large private banks) positions it well to focus on profitable growth," wrote the domestic brokerage in a recent note. 

Out of the 51 analysts covering ICICI Bank, 46 have a "buy" rating, while the remaining five have a "hold" recommendation. The consensus price target from this group of analysts suggests a further 10% upside potential for the shares.

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