ICICI Bank, Axis turn weakness into strength as investors lap up shares

With best-in-class CASA, retail loan portfolios and better quality corporate loans, the banks have found their way back on investors' radar

With foreign investors lapping the shares of Axis Bank and ICICI Bank, and Indian investors (including ‘big bull’ Rakesh Jhunjunwala) are turning optimistic, the two lenders certainly got something right over the years.

The year 2018 has rewarded them with stock gains of 9–14 per cent so far, top performers among the private peers. The thumbs-up from the Street is largely backed by fundamentals, which have turned favourable.

The two banks have converted some of their weaknesses to strengths in the process of cleaning their books after the Reserve Bank-ordered Asset Quality Review (AQR). Since FY16, their corporate exposure was a key