ICICI Bank shares jump over 2% o intra-day high’s of Rs 1,136.90 as the private sector bank reports a consolidated net profit of Rs 11,671.52 crore, marking an 18.4% year-on-year increase from Rs 9,852.70 crore reported in the corresponding quarter of the previous year.
The second-largest lender in India reported a consolidated total income of Rs 67,181.70 crore for the same period, reflecting a nearly 25% year-on-year rise compared to Rs 53,922.75 crore recorded in the fourth quarter of FY23.
The bank’s net interest income for the period increased by 8.1% year-on-year to Rs 19,093 crore in the final quarter of the financial year 2023-24, compared to Rs 17,667 crore in Q4 FY23.
Brokerages on ICICI Bank
Motilal Oswal On ICICI Bank
Motilal Oswal retains ‘BUY’, with a revised Target Price of Rs 1,300 per share reflecting a valuation of 2.4 times the estimated FY26E Adjusted Book Value (ABV) plus Rs 223 for subsidiaries.
According to the latest report by Motilal Oswal on ICICI Bank, the bank has posted another stable quarter, attributed to robust Net Interest Income (NII) and disciplined management of operating expenses and provisions.
The report emphasizes the bank’s diverse growth, driven by a balanced mix of high-yielding portfolios including Retail/Business Banking, alongside sustained momentum in segments like BB, SME, and secured retail.
Despite a slowing pace in the contraction of Net Interest Margin (NIM), ongoing pressure on funding costs may continue to weigh on margins. Notably, the bank has witnessed improvements in asset quality, resulting in a notable decline in both Gross and Net Non-Performing Asset (GNPA/NNPA) ratios.
Motilal Oswal has adjusted their EPS estimates upward by 2% for FY26, while maintaining a stable outlook for FY25. They project a Return on Assets (RoA) and Return on Equity (RoE) of 2.26% and 18.0% respectively for FY26, anticipating sustained ~14% Compound Annual Growth Rate (CAGR) in Profit After Tax (PAT) over FY24-26E.
JM Financials on ICICI Bank
Following the bank’s results, JM Financial maintains its target price of ₹1,330 and retains a ‘Buy’ rating on the stock. This target price suggests a potential upside of 20% from the stock’s previous closing price of Rs 1,107.
The brokerage firm is confident in ICICI Bank’s ability to achieve an average Return on Assets (RoA) of +2.3% and a Return on Equity (RoE) of 18.5% over the estimated period of FY25–26.
This optimistic outlook is underpinned by the bank’s robust asset quality and consistent growth trajectory, despite expectations of marginal easing in margins. ICICI Bank consistently surpasses its larger private sector peers in terms of returns, which the brokerage believes will help sustain its premium valuation.
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