ICICI Bank’s Strong Financial Performance and Market Positioning Justifies Premium Valuation

Analyst Lim Rui Wen of DBS maintained a Buy rating on Icici Bank (IBN – Research Report), boosting the price target to $37.50.

Lim Rui Wen’s rating is based on a combination of factors including ICICI Bank’s impressive financial performance and strong market positioning. The bank reported a record quarterly profit, surpassing expectations with a significant year-over-year increase. Additionally, ICICI Bank has shown improvement in asset quality, evidenced by a reduction in the gross non-performing assets ratio.
Furthermore, the bank is well-positioned due to its robust deposit franchise and stable asset quality, which allows it to benefit from lower deposit rates. The bank’s strong loan growth, driven by domestic demand and digital initiatives, supports its growth trajectory. Lim Rui Wen also notes that ICICI Bank’s consistent earnings growth and improvements in return on equity are expected to continue driving its share price upward, justifying the premium valuation compared to its peers.