The management expects Net Interest Margin (NIMs) to remain under pressure during the September quarter due to cumulative repo rate cuts by the RBI. Margins in Q3/Q4 should show less volatility due to the revised methodology for NIM reporting.
ICICI Bank Stock: What brokerages are sayingCLSA has an ‘Outperform’ rating on ICICI Bank, with a price target of ₹1,700 per share.
The brokerage said that ICICI Bank delivered another strong quarter, with net interest income (NII) and core pre-provision operating profit (PPOP) beating estimates by 4-7%.
Notably, ICICI Bank is the only bank under its coverage so far to report sequential growth in NII, despite a sharp rate-cut environment.
Adjusted NIM fell just 5 basis points QoQ, outperforming peers who saw 11-13 bps compression.
Loan growth moderated to 11-12% YoY given weak demand environment coupled with ICICI Bank’s focus on profitable growth. Deposit growth also moderated, down from 14% to 13%, as the bank shed wholesale deposits.
Nomura has maintained a ‘Buy’ rating on ICICI Bank, and raised its price target to ₹1,740, after a strong all-round performance.
ICICI Bank currently trades at 2.6x one-year forward book value, a 50% premium to its 10-year average. Nomura expects this premium to sustain, supported by a clear visibility of 16% RoE over FY26–28.Bernstein holds a ‘Market Perform’ rating on the lender, with a price target of ₹1,440.
According to the brokerage, ICICI continued on its trajectory of picking profitability over growth with RoA above 2.4%, even as the loan growth slipped to 11.5% YoY.
EPS growth of 14% YoY exceeded expectations, aided by treasury gains, which offset normalising credit costs and modest opex growth.
In light of recent asset quality concerns at other banks, Bernstein said ICICI’s performance provided relief, and its continued focus on profitability over aggressive growth justifies its valuation premium.
Goldman Sachs has a ‘Neutral’ rating on ICICI Bank, with a price target of ₹1,660.
The brokerage said that ICICI Bank delivered a well-managed quarter, with core operating profit beating expectations by 6% and growing 14% YoY.
While investment spreads helped cushion the impact of rate cuts on lending margins, the brokerage flagged concerns around loan growth slowdown, aggressive pricing in mortgages, and thinning tailwinds from legacy NPL recoveries.
Goldman said that credit costs are normalising to 50 bps, and cost-to-income ratio has stabilised at around 40%, limiting near-term upside potential.
Nuvama Institutional Equities reiterated its ‘Buy’ rating on the stock, led by strong PPOP and stable asset quality.
With a beat on core earnings, the brokerage expects the stock to re-rate further. It raised its target price from ₹1,630 to ₹1,670.
Shares of ICICI Bank settled 0.6% higher on Friday at ₹1,426.7. The stock has remained flat in the last one month, is up 11% so far in 2025 and is 3% away from its all-time high of ₹1,471.
