- ICICI Bank’s share price fell by over 4% in early morning trade on Monday.
- Not just ICICI Bank, but other major banking stocks including HDFC Bank, Axis Bank, SBI, PNB, and IndusInd Bank have also taken a beating.
- Despite the market’s glum mood, brokerages expect the stock to rise anywhere between 26% and 29% in the next year.
However, ICICI Bank is not alone in this downtrend. HDFC Bank, State Bank of India (SBI), Punjab National Bank (PNB) and other banking stocks are in the red as well.
According to analysts, even though ICICI Bank’s overall moratorium book declined from 30% to 17.5% in the last three months, the overall share is still higher than its peers.
However, the fact that its gross bad loans fell to a 5-year low should have been a reason to celebrate. Even the brokerages expect the stock to rise anywhere between 26% and 29% in the next year. But the market is in a totally different mood.
ICICI Bank has also increased its provisions in anticipation of what lies ahead once the Reserve Bank of India (RBI) moratorium comes to an end on August 31. It has set aside ₹5,550 crore ($735 million) for the impact of the coronavirus pandemic, with its total provisions amounting to ₹ 8,275 crore ($1.1 billion).
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