Private sector lenders Axis Bank and ICICI Bank have been proactive in adapting to changing market dynamics and have made significant investments in technology and digital banking infrastructure. As a result, they are well-prepared to capture opportunities in the evolving financial landscape.
He pointed out that the valuations of these major banks (top 4 banks) are converging, and there is the potential for them to converge even further. However, Agarwal believes that Axis Bank and ICICI Bank might have the upper hand in this equation.
“We have compared the matrices of the top four large cap banks, they look very similar, and the valuations are converging; they could converge a bit more. So, for some more time to come, Axis Bank and ICICI Bank could end up outperforming the other two,” he said.
Comparatively, during the same quarter in the previous year, Axis Bank had reported a net profit of Rs 4,125.3 crore, as disclosed in a regulatory filing. Forecasts from CNBC-TV18 Polls had anticipated a quarterly profit of Rs 5,961.1 crore for the period being evaluated.
The financial performance of ICICI Bank in Q1 exceeded the projections made by a consensus poll of three brokerage firms. According to information from Moneycontrol, the poll had suggested a 29.5 percent increase in net profit for the June quarter, amounting to Rs 8,982 crore compared to the same period the previous year (with a slight 5.1 percent decrease on a quarterly basis).
For the preceding quarter, Q4FY23, ICICI Bank had reported a net profit of Rs 9,121.9 crore, whereas during the corresponding quarter of the previous year, the profit stood at Rs 6,904.9 crore.
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First Published: Sept 5, 2023 4:10 PM IS
