At a Glance
ICICI Bank has quietly become the most efficient private sector bank in India, with a stunning 18% ROE, strong NIM of 4.57%, and a 5-year profit CAGR of 40%. But while HDFC Bank hogs the headlines, ICICI trades at a lower valuation. Is this India’s most underappreciated banking beast?
1️⃣ What Makes ICICI So Damn Good?
- 🧠 Second-largest private sector bank in India (₹10.1 L Cr market cap)
- 🏦 Full suite: Retail, SME, Corporate + arms in insurance, housing, AMC, brokerage
- 🧾 NIM: 4.57%, well ahead of most peers (HDFC ~4%, Axis ~3.8%)
- 🚨 Gross NPA: 2.3%, Net NPA: just 0.44% — probably cleaner than your WhatsApp chat
- 💰 CASA Ratio at 39.4% = strong low-cost funding
👉 It’s like HDFC’s nerdy cousin who always tops without flexing.
2️⃣ 5-Year Financial Performance: 📈 Clap-Worthy
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROE (%) | Net NPA (%) |
|---|---|---|---|---|---|
| FY21 | 89,163 | 20,364 | 26.58 | 13% | 1.14% |
| FY22 | 95,407 | 26,538 | 36.14 | 15% | 0.76% |
| FY23 | 1,21,067 | 35,461 | 48.74 | 17% | 0.48% |
| FY24 | 1,59,516 | 46,081 | 63.02 | 19% | 0.42% |
| FY25 | 1,86,331 | 54,569 | 71.65 | 18% | 0.44% |
🎯 Key Insight: While most PSU and even private banks were busy repairing balance sheets post-COVID, ICICI thrived.
3️⃣ Stock Performance: Up Only
| Metric | Value |
|---|---|
| CMP | ₹1,424 |
| 52W High/Low | ₹1,472 / ₹1,153 |
| Market Cap | ₹10.1 L Cr |
| P/E | 19.9x |
| P/B | 3.25x |
| ROE | 18% |
| Dividend Yield | 0.70% |
📈 5-Year Price CAGR: 32%
That’s higher than many tech stocks.
4️⃣ Segment Strength: Not Just a Bank
ICICI Group Ecosystem = mini financial empire:
- 🏥 ICICI Lombard – General insurance
- 💰 ICICI Prudential Life – Life insurance
- 📉 ICICI Securities – Broking + wealth
- 🏡 ICICI HFC – Home loans
- 💳 ICICI Bank + iMobile – Super app with UPI, cards, loans, credit score, etc.
🧲 These businesses feed into the bank’s core — like Avengers assembling interest income.
5️⃣ Contingent Liabilities? Yeah, That’s the Catch
😬 ₹58.5 lakh crore (yes, lakh crore) in contingent liabilities.
But most of this is off-balance sheet exposure, i.e. forward contracts, bank guarantees, etc. Not red flags, but worth noting for black-swan watchers.
6️⃣ Valuation: Cheap vs Peers?
Let’s compare:
| Bank | ROE (%) | P/B | EPS Growth | FV Band |
|---|---|---|---|---|
| ICICI | 18% | 3.25x | 26% | ₹1,400 – ₹1,700 |
| HDFC Bank | 16% | 3.7x | 14% | ₹1,800 – ₹2,100 |
| Axis | 13% | 2.1x | 9% | ₹1,000 – ₹1,250 |
🎯 ICICI offers better growth, ROE, and yet trades cheaper than HDFC.
🔍 EduFairValue Range:
- Base: EPS FY26 est. ₹85 × 17x = ₹1,445
- Upper: EPS FY26 est. ₹85 × 20x = ₹1,700
📍Current price of ₹1,424 = not expensive, despite the rally.
7️⃣ TL;DR 💳
- 💪 ROE of 18%, NIM of 4.57%, CASA 39% — top-tier operating metrics
- 🚀 Profit up 2.7x in 5 years
- 📉 Stock still trades at ~20x earnings vs peers like Kotak/IndusInd at 25x+
- 🧾 Risk: High contingent liabilities, but historically well-managed
- 👑 Possibly the most fundamentally sound bank in India today
🔚 Final Thought
ICICI Bank is no longer a turnaround story — it’s the benchmark. If HDFC is the “safe choice,” ICICI is the “smart choice.” And as long as ROE stays high and NPAs stay low, the ₹2,000 dream isn’t that far-fetched.
✍️ Written by Prashant | 📅 June 24, 2025
Tags: ICICI Bank, Private Bank India, ROE 18%, ICICI vs HDFC Bank, Bank Stock Comparison, ICICI Share Price, Net NPA, CASA Ratio, iMobile, ICICI Prudential, ICICI Lombard, Fintech Banking
