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Opinions Charles Lannon
ICICI Bank Ltd.IBNWATCHJan 28, 2014
Stock price when the opinion was issued
As of Jun 15, 2026. Market Open.
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Rick Stuchberry
Larry Berman CFA, CMT, CTARick StuchberryInflation is rising in India because of oil imports, plus strong US dollar. All Indian banks have been falling. With typhoons and people moving to online banking, they’re scrambling. Not the time to be stepping into EM. They’re cheap, but they could be getting a lot cheaper. EMs are twice as risky as NA and European.
(A Top Pick Mar 2/18, Down 2%) Super long term play on India. It is a play on lower middle class to middle class. Owning banks is always the right play.
Thomas GeorgeHe has had this bank for a number of years and likes the country from a demographic point of view. The country has the fastest growth rate even over China. The Indian banking system keeps getting overhauled.
Rick Stuchberry
This Indian bank is the best way to invest in the region’s growth and this is the largest bank. The bank has over 18,000 ATM locations. From a technology perspective, they are well positioned and are involved in blockchain. He is okay with the low yield, to allow the business to grow. Yield 0.75%. (Analysts’ price target is $14.50 )
If you are going to be in an emerging market like India, then you want to be in consumer products or financials, because they are going to get you to all the consumers that are out there. For him, it was between HDFC Bank and this company. HDFC had better metrics. You will be dealing with the volatility of being in India. Both stocks had huge run ups last year in the 30%-40% range. They are pausing right now because they have to see what is going to happen with all of economic changes the government has put through. The government is allowing banks to write off bad loans and to start fresh again. These 2 are probably the best capitalized of the banks, and therefore the least risky. You are going to have volatility of roughly 30%-40% a year and will have to live with it. (See Top Picks.)
Continues to do fantastically well, in particular with their insurance arm. What this bank has going against it in the short term is that Fed tapering will continue to have an adverse effect on many emerging markets, particularly those that have huge current account deficits, and India is a poster child for this. Also inflation in India is super high, which has led their central bank to hike interest rates. Normally this is not a bad thing for banks because they can get higher margins but to the extent that the Indian economy is decelerating, that puts a dampener on their deposit growth. Try to get something in the mid-$20s. Will be very volatile.