ICICI Bank was trading higher by 1% at Rs 295, recovering nearly 2% from its early morning low of Rs 289 on the BSE. The stock of private sector lender adjusted for 1:10 bonus shares and for a dividend of Rs 2.5 per share.
The board of directors of the bank on May 3, announced the issue of bonus shares (including ADS holders) in the ratio of 1:10 i.e. one equity share of Rs 2 each for every 10 fully paid-up equity shares held on the record date. The board also recommended a dividend of Rs 2.5 per share for FY2017 pre-bonus issue.
The record date for issue of bonus shares is fixed as June 21.
Since May, post-January-March quarter (Q4FY17) results, the stock have outperformed the market by 17% as compared to 4% rise in the S&P BSE Sensex.
Analysts at Motilal Oswal Securities reiterate ‘buy’ rating on the stock as it expects the overall pool of stressed loans is showing signs of stability, and bulk of non-performing assets (NPA) recognition is happening from watch list and OSRL (outstanding standard restructured loans).
Further expected measures by GoI/RBI for resolution of lumpy stressed loans provide comfort. Strong capitalization (Tier I of 14.4%), significant improvement in a granularity of book (around 57% retail + SME) and sustained improvement in liability profile (helping to de-risk business) are the key positives, the brokerage firm said in Q4FY17 result update.
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