On Tuesday, Jefferies maintained its positive stance on ICICI Bank, reiterating a Buy rating with a steady stock price target of INR1,350.00. The financial institution, listed on both ICICIBC:IN and NYSE:IBN, has been recognized for its robust deposit growth and effective management of operating expenses, which are anticipated to bolster profit growth.
With a 20% deposit growth forecasted for the fiscal year 2024, ICICI Bank is outperforming many of its large bank counterparts. Moreover, the bank's loan-to-deposit ratio (LDR) is positioned at the lower end among its peers, and the growth of operating expenses has been moderated to 13% in the fourth quarter.
The bank's prudent financial management is expected to drive healthy earnings growth in fiscal years 2025-2026, even as net interest margins (NIMs) and credit costs return to more standard levels. Jefferies' outlook suggests that ICICI Bank's continued growth trajectory and return on equity (ROE) are likely to sustain its market valuations.
The firm's endorsement of the bank's performance and future prospects is encapsulated in the retention of the Buy rating. ICICI Bank's strategic focus on maintaining a balance between growth and cost management appears to be a key factor in its favorable assessment by Jefferies.
In other recent news, ICICI Bank's Board of Directors has scheduled a meeting to review the financial results for the quarter ending June 2024. In addition, the bank has declared a trading blackout period in compliance with the Securities and Exchange Board of India regulations.
ICICI Bank also received a warning from the Securities and Exchange Board of India regarding its handling of the delisting process of ICICI Securities Limited's equity shares. Despite this, the bank assured that this will not impact its financial or operational activities.
Furthermore, ICICI Bank received a positive stance from Citi, maintaining a Buy rating with a steady stock price target. The bank expressed optimism about the Reserve Bank of India’s draft project finance guidelines and expects improved operating efficiency. In recent developments, S&P Global Ratings revised ICICI Bank's outlook to positive from stable, indicating an improved financial position.
Lastly, ICICI Bank retained its Buy rating from CLSA, emphasizing the bank's commitment to environmental, social, and governance standards. The bank's proactive efforts in integrating these standards into its operations and credit appraisal process have been noted. These are the recent highlights for ICICI Bank, providing valuable insights for investors.
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