The lender reported its September quarter results over the weekend, where its asset quality improved compared to the June quarter, while its advances and deposits both grew by 15% each during the quarter, when compared to the same period last year.
Brokerage firm Citi maintained its “buy” rating with a revised price target of ₹1,600 from ₹1,547 earlier. It said that the lender’s consistency and resilience are paving the way for a higher valuation.
It also mentioned that ICICI Bank is bucking the peer trend with resilient asset quality and credit cost delivering an upbeat surprise with a sequential improvement.
Factoring in lower opex and credit costs, Citi has raised its earnings estimate for ICICI Bank by 2% for financial year 2025 – 2027.
Nomura
called the results a “flawless quarter” and termed the lender a “cut above the rest” with strong loan and deposits growth along with stable asset quality.
Nomura has raised ICICI Bank’s Earnings Per Share (EPS) estimates by 2% and 3% for financial year 2025 – 2027, factoring a lower opex and slightly lower credit costs. It has a “buy” rating on the lender with a price target of ₹1,575.
CLSA has maintained its “outperform” rating on the lender with a price target of ₹1,600. It said that HDFC Bank and ICICI Bank stand out this quarter among other private sector banks, adding that among the large banks, ICICI Bank has the highest standard asset provisioning.
Motilal Oswal also retained its “buy” rating on ICICI Bank with a price target of ₹1,500. It has increased ICICI Bank’s EPS estimates by 2.8% and 1.8% for financial year 2025 and 2026 and Return on Assets (RoA) and RoE (Return on Equity) are estimated to be at 2.19% and 17.4% respectively in financial year 2026.
ICICI Bank now has a sizable valuation premium over its peers and once again delivered numbers well worthy of that premium, Bernstein wrote in its note, who has a “market perform” rating with a price target of 1,250.
Goldman Sachs is “neutral” on ICICI Bank with a price target of ₹1,361. It said that a significant re-rating will depend on credit cost trends this cycle, NIM trajectory and a sustainability of improvement in the cost-to-income ratio.
Shares of ICICI Bank have declined 1% in the one month ahead of its results. The stock is up 26% so far on a year-to-date basis.
