ICICI Bank stock is halal or not, so the answer depends on the principles of Islamic finance. According to Islamic finance, haram things like riba (interest), gambling, and unethical practices have to be avoided
ICICI Bank is a conventional bank in which primary income is interest-based. According to Islamic finance, interest-based income is haram. Therefore, strict Shariah-compliant investors should avoid ICICI Bank shares
There are many banks in India. All the banks are commercial interest based income and one of them is ICICI Bank. If you want to invest according to Islam then you have to avoid the banking sector. Many countries have Islamic banks but India doesn’t have any yet.
Fundamentals
| Mkt Cap | P/E Ratio | P/B Ratio | Industry P/E | Debt to Equity |
|---|---|---|---|---|
| 9,07,449cr | 19.16 | 3.30 | 13.29 | NA |
| ROE | EPS | Div Yield | Book Value | Face Vallue |
|---|---|---|---|---|
| 17.20% | 67.11 | 0.77% | 390.09 | 2 |
- Market Cap
The market capitalization of ICICI Bank is around ₹ 9 lakh crore. It is one of the top banks in India, and its market cap is high due to its strong financial performance and large customer base. - ICICI Bank’s Price-to-Earnings (P/E) ratio ranges between approximately 19.17 to 21.7. The P/E ratio helps understand the valuation and profitability of a share
- ICICI Bank’s P/E ratio is higher than its peer banks, while its lowest level in the industry is around 13 P/E, which reflects the market’s confidence in the company’s future growth prospects.
- The company has no debt, which is a very good thing
Conclusion
If you are building a Shariah-screened portfolio, you should include only those stocks that operate in non-interest-based businesses and whose operations are in accordance with Shariah.
You should consult a Shariah scholar or expert before taking an investment decision
If you want to invest in the banking sector, consult a stock advisor before investing.
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