ICICI Bank scales $100-b market capitalisation

ICICI Bank’s shares are on a bullish trend. On Tuesday, during intraday trading, ICICI Bank’s share rose by more than 2% to reach a high of 1,199.05 rupees. With this, ICICI Bank has made history. In fact, ICICI Bank has become the sixth Indian company to achieve a market capitalization of $100 billion. In terms of market cap, ICICI Bank is the second largest bank in the country after HDFC Bank.

Let’s understand how the bank achieved the journey to $100 billion. Investors have benefited significantly from ICICI Bank’s impressive performance and brokerage firms have set further targets for ICICI Bank’s shares.

ICICI Bank’s market cap reached $101 billion on Tuesday. The bank’s market cap has seen a jump of $17 billion in just 2024. According to a report by The Economic Times, the bank crossed the $50 billion market cap level in December 2020 and within just 10 months, in October 2021, it reached $75 billion. It has now touched $100 billion on June 25, 2024. In terms of market value, ICICI Bank is also the fifth largest company in the country.

ICICI Bank’s shares have risen by 20% in the first six months of this year. Whereas during this period, NIFTY and Bank NIFTY saw an increase of 9%, ICICI Bank’s shares closed at 1,211 rupees on Wednesday, rising by 13.05 rupees, or 1.09%. According to Google Finance, ICICI Bank’s shares have provided returns of over 30% in one year and over 175% in five years. The ICICI share has provided returns of more than 29,000% from its level of 4.08 rupees on January 1, 1999, which is 25 years and 5 months ago.

Brokerage firm Motilal Oswal has maintained a BUY rating on ICICI Bank in its recent note. They have set a target price of 1,350 rupees. This shows a potential increase of 15% from the current level. The brokerage firm has stated that with good loan growth and strong asset quality, ICICI Bank is in a position to deliver better performance.

According to the report, among other companies currently with a market cap of $100 billion, Reliance Industries is in the lead with $235.8 billion. TCS is second with $166.4 billion, HDFC Bank stands third with a market cap of $156 billion and Bharti Airtel is fourth with $101.2 billion. With a market cap of $101 billion, ICICI Bank is in fifth place.

Furthermore, State Bank of India (SBI) has a market cap of $90.1 billion. On the other hand, Infosys touched a market cap of $100 billion in 2021 but struggled to maintain this level. Currently, Infosys’ market cap is $76.5 billion.

In terms of market capitalization, ICICI Bank is ahead of government-owned SBI. ICICI Bank’s share touched an intra-day high of 1,222.85 rupees on Wednesday. This is also its 52-week high.