The ICICI Bank has seen its market cap growth rapidly in the last one year. There have been 3 main reasons for the rally in the stock.

Firstly, the worst appears to be over in terms of the NPA problems that the bank was facing with most of its bad assets already written off and addition risk quite low. This has given an opportunity for the bank to also expand its loan book effectively.

Secondly, the management related problems were a major overhang for the bank and that appears to be under control. With the shift in the top management, the uncertainty over CEO investigations can go on independently.

Thirdly, the sum of parts is something that is not yet factored into the valuation of ICIC Bank. There is a major value block in ICICI Pru Life and also ICICI Lombard; both of which are listed. In addition, AMC is now another big value business as evident from the recent list of HDFC AMC. All that has added to the valuation of ICIC Bank.