Deja Vu for ICICI Bank investors: Will it be better this time?
According to Macquarie’s projections, ICICI Bank trades at an FY23 estimated price-book (P/B) multiple of 2.4 compared with 2.7 for HDFC Bank.
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Investors would recollect that the last time ICICI Bank had reported better growth than HDFC Bank was in the mid-2000s when the former had taken an aggressive stance of growing the wholesale book.
ET Intelligence Group: The stock of ICICI Bank gained nearly 4% on Monday after the bank reported better loan book growth retail and overall than the larger peer HDFC Bank for the March quarter with improving asset quality. Given an additional COVID provision of Rs 1,000 crore, the bank is well placed amid the second wave of the pandemic. While it has been able to reduce the valuation gap with HDFC Bank over the past few quarters, the
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ICICI Securities raised the targets on HDFC Bank, Axis Bank, SBI, IndusInd Bank, Bandhan Bank, Federal Bank, DCB Bank, Kotak Mahindra Bank, City Union Bank and YES Bank by 13-57 per cent
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ICICI Securities said financiers this time have created a war chest of liquidity, deposits, capital and credit contingency buffers – much in advance to bear the brunt of economic and credit cycle disruption.
Mumbai: ICICI Securities has raised its share price targets on Indian banks by as much as 57 per cent as it believes long-term growth and value drivers are offsetting the immediate disruption in the sector. The brokerage downgraded its rating on Kotak Mahindra Bank to hold and on AU Small Finance Bank to add .