On Wednesday, ICICI bank Ltd. crossed ₹5 trillion in market capitalization as its shares have surged over 38% so far this year. The scrip was at a record high of ₹734 a share, up 2% from its previous close. Its MCAP stood by ₹5.10 trillion, at 11 am.
ICICI Bank is the second lender after HDFC Bank and the seventh Indian firm to achieve this milestone.
Earlier this level was hit by Reliance Industries, Tata Consultancy Services, HDFC Bank, HDFC Ltd, Hindustan Unilever Ltd, and Infosys Ltd.
“ICICI Bank has emerged as a growth leader and with better return ratios and credible management, it will be able to narrow down the valuation gap with peers like HDFC Bank, “Analysts said.
The extension of MD and CEO Sandeep Bakhshi’s term for two years was approved recently by RBI.
The RBI’s term extension for two years, instead of the general practice of a three-year extension, is in line with the valid board/shareholder approval for his appointment from October 15, 2018, to October 23, 2023, for a five-year period. Thus, it should not be seen as a short-term extension by the RBI similar to RBL Bank and DCB Bank.
In a report, Emkay Global said, “Under the leadership of Bakhshi, the bank has seen a major transformation across business and financial parameters. The bank has steered well through the pandemic, building strong provision/capital buffers and is raring to go for growth with a clear focus on sustainable profitability.”