The ouster of Chanda Kochhar was a big blow to one of India’s largest private banks. Poor corporate governance meant the stock price of ICICI Bank took a beating, as fresh allegations continued to emerge against the once-revered CEO. But since Kochhar's resignation in October 2018, the shadow of financial misconduct has given way to renewed investor interest. In fact, ICICI Bank has risen 73% since then, to scale a 52-week high of Rs.518. It currently trades at Rs.510 and analysts at Morgan Stanley Research say there’s room for more upside. In their report, they state, “We still see 50-100% upside in one to two years.” They remain overweight on the stock, since at 1.8x core P/B for FY21, it’s still available at “a deep discount to private peers”. Whereas, Axis Bank trades at 1.9x, IndusInd at 2.4x and Kotak Bank at 3.7x.
Anirudh Kamani of ICICI Home Finance sells ICICI Bank stake
As ICICI Bank hits a new high, ICICI Home Finance CEO Anirudh Kamani sells stock worth ₹21 million
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