The ICICI Bank American depository receipt (ADR) rose 4.73% overnight.Meanwhile, the BSE Sensex was down 93.71 points, or 0.90%, to 10242.14. On BSE, 18.65 lakh shares were traded in the counter. The scrip had an average daily volume of 32.90 lakh shares in the past one quarter.The stock hit a high of Rs 449.85 and a low of Rs 419.05 so far during the day. The stock had a 52-week high of Rs 1465 on 14 January 2008 and a 52-week low of Rs 282.15 on 27 October 2008.
The stock advanced 39% in five successive trading sessions to Rs 430.95 on 3 November 2008 from Rs 310 on 24 October 2008.The stock had underperformed the market over the past one month till 3 November 2008, declining 14.58% as compared to the Sensex’s decline of 17.47%. It had also underperformed the market in the past one quarter, falling 32.88% as compared to the Sensex’s decline of 29.47%.
India’s second largest private sector bank by market capitalisation has an equity capital of Rs 1113.26 crore. Face value per share is Rs 10.The current price of Rs 442 discounts its Q2 September 2008 annualised EPS of Rs 36.44, by a PE multiple of 12.12.
Reports quoted ICICI Bank chief executive officer (CEO) KV Kamath as saying that the impact of the recent round of rate cuts by the Reserve Bank of India (RBI) was still to be felt. He then added that the monetary signals from authorities were clear and ICICI would take a call on cutting interest rates soon.
The much battered stock of ICICI Bank on Monday, 3 November 2008 gained 8% on BSE, a day after some reports suggested the bank had retired about Rs 24,000 crore expensive deposits to reduce cost and improve bottomline.
ICICI Bank's Joint Managing Director, Chanda Kochhar was quoted by media as saying that ICICI had retired wholesale deposits of Rs 24,000 crore in the last six months. At the same time, it had increased the current account and savings account by Rs 3,000 crore in this period.
The Reserve Bank of India (RBI) on Saturday (1 November 2008) unexpectedly cut its repo rate or main short-term lending rate by 50 basis points (bsp) to 7.5% and banks' cash reserve ratio (CRR) by 100 basis points to 5.5%. The repo rate is the rate at which the RBI lends cash to banks. The CRR is the percentage of deposits which the banks must keep with the central bank. The CRR cut is expected to release Rs 40000 crore into the system.
The RBI also cut banks' statutory liquidity ratio (SLR) by 100 bps to 24% of their deposits with effect from 8 November 2008. The SLR is the ratio of government bonds and other approved securities that banks have to hold as a percentage of their total deposits.
The rate cut comes after inflation hit a four-month low. The cut is aimed to boost spending and investments, and try to stabilise the financial markets. In the current situation of credit crunch, banks have reduced lending, and frozen credit lines to their corporate clients.
ICICI Bank’s net profit rose 1.2% to Rs 1014.21 crore on a 1.3% rise in sales to Rs 9712.31 crore in Q2 September 2008 over Q2 September 2008.ICICI Bank provides retail-banking, corporate banking, cash management and treasury management services.
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