CLSA sees this private sector lender well placed on deposits to likely zoom by 21 per cent: Check details

ICICI Bank shares after scaling close to their 52-week high price ended lower by a margina. The share gained as CLSA iterated an outperform call on the stock with a target of Rs 1,500. The suggested target price implies an upside of over 21 per cent.

Last, at around 9:34 am, the stock traded higher by 0.36 per cent at Rs 1,239.4, while the stock's 52-week high price is Rs 1,257.8  which the stock scaled on July 11 this year. This is also the stock's all-time high price. 

The day-high price reached today is Rs 1,241.1, suggesting just over 1 per cent discount from the all-time high.

The brokerage highlighted that the bank is well-placed on deposits and does not expect the cost of deposits to rise materially. Net interest Margin (NIM) at the lender is likely to be stable and a rate cut would only result in a temporary NIM compression, noted the brokerage.

CLSA expects the lender to report profitable growth while it is not guiding for any cost-to-income ratio level. Also, the lender is expected to post healthy loan growth. Business banking/MSME lending to continue to grow quickly, it added.

ICICI Bank stock in the last one year has climbed 29 per cent, while Nifty Bank during the same has climbed just 14 per cent.