ICICI Bank surpasses UBS, securing the 18th spot among the world’s most valuable lenders

Shares of ICICI Bank reached a 52-week high on Tuesday, becoming the sixth Indian company to surpass a $100 billion market capitalization. The stock peaked at Rs 1,207 before ending the day 2.5% higher at Rs 1,199.

Only HDFC Bank, with a market capitalization of just over $162 billion, is above ICICI Bank in terms of m-cap rankings among the lenders.

The intraday surge meant that the private banking behemoth has now become the 18th most valuable lender in the world, surpassing UBS, which has a market cap of around $98 billion.

The feat has also placed ICICI Bank alongside domestic giants such as Tata Consultancy Services (TCS), and Bharti Airtel, among others.

In the last year, the lender’s shares have jumped nearly 30%, while they were up 20% so far this year.

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ICICI Bank Reports Strong Q4 Performance with 17% Increase in Net Profit

ICICI Bank posted a better-than-expected 17% increase in net profit for the fourth quarter, helped by strong demand for loans and lower provisions.

The Mumbai-based bank posted a net profit of Rs 10,707 crore for the quarter ended March 2024. For fiscal 2024, it reported a net profit of Rs 40,888 crore, up 28% from fiscal 2023.

“We will continue to enhance the use of technology in our operations. IT resilience and customer security are paramount. There is no constraint on the IT budget,” he said, responding to a query on whether the bank had received any warnings from the sector regulator over its IT systems.

According to Motilal Oswal, ICICI Bank is expected to maintain robust loan growth, focusing on quality underwriting. The bank’s asset quality remains resilient, and credit costs are expected to normalize gradually.

The bank’s capital adequacy ratio (CAR) for the fourth quarter stood at Rs 16.33%, which was up from 14.61% in Q3FY24 and down YoY from 18.34% in Q4FY23.

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