In an interview to ET Now, Nischal Maheshwari said that ICICI Bank is one of the largest franchises to have been around.
“It has got one of the largest liability franchise with a CASA of more than 40%. These things cannot be ignored. The valuations are very mouth-watering. It’s about 0.8 times copre book value. I think these kind of events help long-term investors to get into the stock, and that too with quantity,” he told the channel. According to the expert, investors must start buying the shares, and in case of more bad news, it gives them a good opportunity to accumulate the stock.
ICICI Bank shares were trading at Rs 287.9, up by more than 2.5% on Tuesday morning. Notably, the shares have shed more than 5% in the last one month alone. The banking major assumed increased focus after reports of alleged impropriety and a potential quid pro quo in disbursing loan to Videocon group. Morgan Stanley says that newsflow will drive volatility in the stock.
ICICI Bank- Chanda Kochhar saga assumed heightened scrutiny on allegations that Rajiv Kochhar-led Singapore-based Avista Advisory Group may have benefited from Rajiv Kochhar’s relationship with the ICICI Bank CEO to get the mandate for restructuring foreign currency-denominated debt deals of seven companies, which included Videocon.
This development came in the background of a report in The Indian Express, which said that Videocon chairman Venugopal Dhoot started a joint company with ICICI Bank MD and CEO Chanda Kochhar’s husband Deepak Kochhar along with two of her other relatives. According to the report, a staggering Rs 2,810 crore out of the Rs 3,250 crore loan given out to Videocon by ICICI Bank has remained unpaid. The report further states that Videocon account was declared a non performing asset (NPA) by ICICI Bank in 2017.Last modified on Tuesday, 10 April 2018