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ICICI Bank trades ex-bonus, dividend today

The bank on May 3, declared bonus shares in the ratio of 1:10 and dividend of Rs 2.5 per share.

SI Reporter  |  Mumbai 

A municipal worker walks past a logo of ICICI Bank at its headquarters in Mumbai (Photo: Reuters)

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 shares and for of Rs 2.5 per share.

The board of directors of the bank on May 3, announced issue of 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 of Rs 2.5 per share for FY2017 pre-issue.

The record date for issue of 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 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 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.

First Published: Tue, June 20 2017. 10:35 IST