ICICI Bank’sQ2 results have caught the attention of leading brokerage houses, many of which have issued favorable recommendations. These recommendations have been driven by the bank’s steady balance sheet growth, strong loan performance, and effective cost control.
CLSA maintained an “Outperform” rating with a target price of₹1,600, commending the bank’s steady quarterly performance. CLSA highlighted ICICI’s healthy balance sheet growth in the mid-teens, along with a moderate net interest margin (NIM) contraction of 5-10 basis points (bps). Core earnings, as seen in pre-provision operating profit (PPOP), grew faster than net interest income (NII) due to operating leverage, while gross non-performing loans (GNPL) and credit costs remained stable.
Motilal Oswal (MOSL) retained a “Buy” recommendation with a target price of ₹1,500, noting ICICI’s strong all-round performance and slight improvement in asset quality. With impressive cost control and robust business growth, MOSL raised earnings-per-share (EPS) estimates by 2.8% for FY25 and 1.8% for FY26, projecting a return on assets (RoA) and return on equity (RoE) of 2.19% and 17.4%, respectively, for FY26.
Nomura also recommended a “Buy,” raising its target price to ₹1,575 after a “flawless quarter.” The firm emphasized strong loan and deposit growth with sustained asset quality. It increased FY25-27 EPS estimates by 2-3%, factoring in reduced operational expenses and lower-than-expected credit costs.
Goldman Sachs offered a more cautious “Neutral” stance with a target price of ₹1,361 but acknowledged ICICI’s solid quarterly performance despite macroeconomic challenges. GS cited ICICI’s better-than-expected slippages, favourable credit costs at 40bps, and a 12% year-on-year (YoY) core PPOP growth, which exceeded expectations.
