Shares of ICICI Bank have seen renewed buying on the bourses in the last few days as its focus on digital has been welcomed by analysts. The stock on Monday closed at ₹510.65 on the BSE, up 1.7 per cent. In the last one week, ICICI Bank has gained 7.8 per cent and in the last one month15.3 per cent.
The stock’s 52-week high and low figures are ₹552.40 and ₹269, respectively.
ICICI Bank has historically been technology-savvy and has several innovations to its credit. However, systemic asset quality concerns have taken the centre-stage and diverted investor focus away from the strong digital capabilities/innovations built by the bank, said Motilal Oswal Securities in a report.
"New digital innovations have positioned the bank well to gain incremental market share across key product lines," the note added
"ICICI Bank has made adequate investments in digital platforms, leading to virtually no outages -- unlike its large peers that have recently faced regulatory ire -- and better customer wallet share/profitability, another brokerage Emaky Global said.
Micro market
Bank seeing opportunities in the micro market and slowly and steadily focusing on micro market. Bank ‘s focus is on 15 cities and within that top pin codes that will help in increase in customer acquisition and expand its footprints. It is hiring more virtual RM rather than physical and also increasing engagement with corporates at branch level.
According to IDBI Capital, the bank is optimistic about corporate banking and seeing strong capex from private while the key sectors will be steel, cement pharma and supply chain. The bank transforming itself from the provider of capital to partner by providing solutions and help to gain topline.
"With strong capital base and relatively large Covid-related issues moving behind, the bank will continue to invest heavily in technology. We believe these initiatives will gradually help towards sustained doubled digit return ratios of 14-15 per cent by FY23," said Prabhudas Lilladher.
Published on December 7, 2020
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