6 Reasons why we should invest in ICICI bank Ltd Share

ICICI BANK LTD
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ICICI was formed in 1955 at the initiative of the World Bank, Government of India and representatives of Indian industry. Its most important goal was once to create a development financial institution to grant medium-term and long-term undertaking financing to Indian businesses.  Until the late 1980s, ICICI particularly targeted its things to do on challenge finance, offering long-term funding to a number industrial projects. ICICI Bank used to be included in 1994 as a phase of the ICICI Group.  In 1999, ICICI grew to become the first Indian organization and non-bank or economic organization to be listed on the New York Stock Exchange.

Loan Book Growth

ICICI Bank has surpassed the CAGR of the last 5 years.ICICI Bank Ltd registered a YoY growth of 17.77% in its advances, which is more than its 5 year CAGR of 10.87%.

Net Interest Margin

The company has been able to expand its net interest margin on a consistent basis over the last three years, with net interest margin at 3.6% in the previous year.

Achievements of ICICI BANK LTD

  • ICICI bank  ranked No. 1 in the ‘Best Service’ (Asian Bank) category for its trade finance services, as per the 2023 Euromoney – Asiamoney Trade Finance Survey. The survey was conducted by AsiaMoney, a Hong Kong-based finance magazine.
  • According to a survey conducted by Business Today magazine in association with HR Solutions Company, ICICI Bank emerged as the ‘Best Company to Work for in India’ in the BFSI sector among companies across 12 sectors. This is the sixth time in the last seven years that we have received this recognition.
  • ICICI Bank has been adjudged ‘India’s Best Domestic Bank’ by AsiaMoney for the second year in a row.  1 AsiaMoney is a Hong Kong-based finance magazine from Euromoney Group (a part of the London-based Daily Mail).  The bank received this award for its digital initiatives, wealth and private banking business and sustainability efforts.
  • ICICI Bank has emerged as the winner in the category ‘Best in Treasury and Working Capital for SMEs in India’.  Hong Kong-based business magazine The Asset organizes these awards.
  • ICICI Bank has been awarded the ‘Consistent Excellence’ award in a survey conducted by Global Custodian, a London-based magazine covering the international securities services industry.  The bank was recognized for its securities services in 13 categories including asset management, asset protection, risk management, relationship management and use of technology.

6 Reasons why we should invest in the stock of ICICI bank Ltd

Returns of ICICI Bank Ltd

ICICI bank ltd has given returns of 18.01% in 1 year, 175.78% in 3 years and 217% in 5 years.In this, you can understand that the way the inflation rate is increasing by 6%, which is not affecting your  returns, at least you need 12% returns to stay away from the effect of inflation and this in the stock  you are getting returns of more than 12%.

The current stock price of ICICI Bank is ₹970. If you hold 500 stocks of ICICI for 5 years, you can get a return of 217%, that is, if you have invested a total of 970*500=₹4,85,000.  So after 5 years you will have an income of 4,85,000*217% = ₹ 10,52,450 in which your profit will be ₹ 5,67,450 i.e. you will get more than double your investment.

Stock performance of ICICI Bank Ltd

On Friday, August 4, the stock price of ICICI Bank was at ₹972.10 at 3 pm, which is ₹7.10 higher than the previous closing price of the stock, i.e. an increase of 0.74% in the stock price.  ICICI Bank stock price is likely to go up to ₹976 on Friday. On Friday the closing price of stock was ₹970.

Also Read : What is happening with Tata Power? is now the Time to Buy?

Shareholders in the portfolio of ICICI Bank Ltd

FIIs hold 44.53% of ICICI Bank’s portfolio, DIIs hold 44.90% and MFs hold 29.23%.  Others hold only 10.57%. FII’s shareholding in the portfolio of ICICI bank is the second largest share after promoters, and an increase in FII stake in a company means better returns for you.

Dividend records

ICICI Bank has announced to give 400% dividend to its shareholders in the year 2023, its ex date is 9 August.  A dividend of 250% was given in the year 2022.  Also, in the year 2021, 100% dividend was given by ICICI Bank to the shareholders.

Financial Performance

ICICI Bank has earned a total income of ₹ 52,084 crore in the first quarter of the financial year 23-24.  PAT has shown a growth of 7.95% and net profit margin has come out to be 20.42% i.e. a profit of ₹10,636 crore.  Which is more than the previous quarter, as well as the basic EPS of ICICI Bank is ₹ 15.22, while in the previous quarter it was around ₹ 14.

PE Ratio

The full form of PE Ratio is price to earning ratio. Through PE ratio, we can know whether the stock we want to buy is cheap or expensive. The ideal value of PE ratio should be up to ₹ 20, it is neither too cheap nor too expensive. . But it is not necessary that the PE RATIO of a company’s stock is low, only then we should buy the stock because the stocks of growing companies trade on high PE only. There is a formula to get PE Ratio

 PE Ratio= The Current Price of Stock / EPS

Here the full form of EPS is Share on Earnings.  EPS means that how much profit the company is generating from its own shares.  The current EPS of ICICI Bank is around ₹ 15.22.  And the PE ratio of ICICI Bank is around ₹18.1

frequently asked questions (FAQs)

What is ICICI Bank’s historical performance in terms of returns?

ICICI Bank has delivered returns of 18.01% in the last year, 175.78% in the last three years, and an impressive 217% over the last five years. These returns have outpaced the inflation rate, providing an attractive investment opportunity.

How has ICICI Bank’s stock performed recently?

On August 4, ICICI Bank’s stock price increased by 0.74%, closing at ₹970. The stock is projected to reach ₹976, indicating positive momentum.

Who are the major shareholders of ICICI Bank and what does that imply for investors?

Institutional investors have a significant stake in ICICI Bank, with Foreign Institutional Investors (FIIs) holding 44.53%, Domestic Institutional Investors (DIIs) holding 44.90%, and Mutual Funds (MFs) holding 29.23%. A higher FII stake is often associated with better returns for investors.

What is ICICI Bank’s dividend history?

ICICI Bank has consistently provided dividends to its shareholders, with a 400% dividend announced for 2023. In 2022, a dividend of 250% was given, and 100% dividend was given in 2021.

How has ICICI Bank’s financial performance been in recent quarters?

In the first quarter of the financial year 23-24, ICICI Bank reported a total income of ₹52,084 crore, showing a growth of 7.95% in Profit After Tax (PAT) and a net profit margin of 20.42%. The company’s earnings per share (EPS) also improved to ₹15.22.

What is the PE Ratio and how does it apply to ICICI Bank?

The PE Ratio, or Price-to-Earnings Ratio, indicates whether a stock is relatively cheap or expensive. ICICI Bank’s PE ratio is around ₹18.1, which is below the ideal value of ₹20. A lower PE ratio could suggest that the stock is attractively priced.

Why has ICICI Bank been recognized by various institutions and publications?

ICICI Bank has received recognition for its services, digital initiatives, and overall performance. Notably, it was ranked No. 1 in trade finance services in the 2023 Euromoney – Asiamoney Trade Finance Survey and has been consistently recognized as a top company to work for in the BFSI sector.

What was ICICI Bank’s original purpose and focus when it was formed?

ICICI Bank was formed in 1955 with the initiative of the World Bank, Government of India, and representatives of Indian industry. Its primary goal was to create a development financial institution providing medium-term and long-term project financing to Indian businesses, particularly focusing on industrial projects.

When did ICICI Bank become listed on the New York Stock Exchange?

ICICI Bank became the first Indian organization and non-bank financial institution to be listed on the New York Stock Exchange in 1999.

What are some key achievements of ICICI Bank in recent years?

ICICI Bank has been recognized for its digital initiatives, wealth and private banking business, sustainability efforts, and treasury and working capital services for SMEs. It has also received awards for consistency and excellence in various categories.

Disclaimer

The information provided here is for educational and informational purposes only. It is not intended as financial or investment advice. Investing in stocks and financial markets involves risks, and past performance is not indicative of future results. Before making any investment decisions, it is recommended that you consult with a qualified financial advisor or professional who can assess your individual financial situation, risk tolerance, and investment goals.

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