• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Suresh Krishnamurthy

FRESH investments can be considered in the stock of ICICI Bank. The stock is now trading at a price to book value of less than 2 times. The valuation is attractive considering its profitability.

ICICI Bank is also in a better position to take advantage of any large rise in interest rates. Interest rate spikes may lead to relatively lower losses on its investment portfolio compared to other banks.

On the other hand, the expansion in spreads will more than compensate for the losses on its investment portfolio. Profit growth outlook becomes brighter when you factor in the above-average growth in its retail loan book and the consistent rise in its fee income.

The negative factor in the case of ICICI Bank is the extent of bad loans on its books. That situation has, however, been consistently improving in the past few quarters with lower provisions, too, contributing to the bottom line.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
FMCG stocks: No longer for defensive investors

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line