Market expert Prakash Diwan sees a potential upside of nearly 20-25% in ICICI Bank following a 'stellar' second-quarter performance that also indicated the bank's growing market share.

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"The ICICI Bank numbers were stellar. ICICI Bank is one that is revitalizing itself. They've seen some market share gains as evident from these numbers, which if they can hold on to, probably leads to a little bit of a rerating another 20-25% upside very quickly," Diwan told CNBC-TV18.

ICICI Bank released its quarterly earnings on October 21. The net profit of the country's second-largest private sector lender grew nearly 36% year-on-year (YoY) to ₹10,261 crore from ₹7,557.8 last year.

The stock has declined more than 1% over the past month.

The bank's net interest income (NII) of ICICI Bank grew 23.8% YoY, to ₹18,307 crore for the quarter from ₹14,786 crore in the same quarter last year.

Diwan also shared his views on Paytm and ONDC.

According to Diwan, Paytm's omnipresence as a money transfer platform positions it well to capitalize on the rise of Open Network for Digital Commerce (ONDC), a unified digital platform that simplifies online buying and selling of goods and services.

"Paytm is the most omnipresent platform which people use for money transfer. And if they were to start riding on that ONDC growth, it's going to be a lot of business that will come," he said.

For investors with a long-term view, Diwan suggests Paytm as an attractive investment opportunity. "...if you have a long-term view. It's a great buy, at least for the next 40-50% in the next couple of years."

Fintech firm One97 Communications, which operates under the Paytm brand, released its quarterly earnings on October 20. The company's losses for the second quarter narrowed to ₹290.5 crore from ₹571.1 crore last year.

Patym shares have gained more than 12% in the last month.

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(Edited by : Shweta Mungre)