ICICI Bank’s stock has lagged other large banks this year, but Jefferies, in its November 3 note, said the underperformance may not last. In a new report, the brokerage reiterated its Buy call on the private lender and set a target price of Rs 1760, indicating about 31% upside from the latest close of Rs 1,345. Jefferies believes the concerns around CEO succession have been priced in and that the bank’s execution track record, profitability and balance-sheet strength remain among the best in the sector.
Jefferies on ICICI Bank: Leadership transition risk is manageable
The brokerage noted that CEO Sandeep Bakhshi’s current term runs until October 2026. Media reports suggest he may not seek an extension, but Jefferies said ICICI Bank has a long history of grooming internal talent for senior roles, which reduces uncertainty.
The firm pointed out that former leaders such as K V Kamath, Chanda Kochhar and Sandeep Bakhshi himself were internal appointees, and that the present leadership team has the depth to ensure continuity. Executive directors Rakesh Jha, Sandeep Batra and Ajay Gupta were indicated as potential successors, supported by the bank’s low senior attrition.
Jefferies on ICICI Bank: Strong operating momentum
ICICI Bank has gained only 5% this year, compared with a 13% rise in the Nifty Bank index. Jefferies attributed this gap to investors taking a cautious stance ahead of the CEO transition. Even so, the firm said the bank’s financial delivery remains steady. ROA is expected to stay around 2.4% in FY25. NIMs should hover near 4.5%. Loan growth is projected at 14% CAGR through FY28. Asset quality is seen improving with GNPA likely easing to 1.4% in FY26.
Jefferies said the consistency of these metrics demonstrates that underlying performance remains intact.
Jefferies on ICICI Bank: Valuations offer room for re-rating
According to the firm, ICICI Bank’s valuation already showed some caution around succession timelines. The stock trades at about 15 times adjusted FY26 earnings, placing it at a discount to peers such as HDFC Bank and Kotak Mahindra Bank.
Jefferies valued the core bank at Rs 1464 per share and subsidiaries at Rs 298 per share, which together form the Rs 1760 target price. The brokerage said sustained earnings delivery, clarity on leadership transition and continued deposit traction could act as triggers for re-rating.
Jefferies on ICICI Bank: Key factors to watch in coming quarters
Jefferies said it will track commentary on the succession process, the pace of deposit accretion and the stability of margins. It also noted that large lenders tend to see temporary stock pressure during leadership changes, as was the case with HDFC Bank, Kotak Bank and Bajaj Finance.
However, the brokerage stressed that performance typically stabilises once the transition is completed, and that ICICI Bank’s balance sheet strength and operating discipline offer comfort even during periods of management change.
Jefferies on ICICI Bank: Risk view remains balanced
The firm listed slower loan growth, a shift in asset quality trends or delays in succession clarity as potential risks. It also mentioned the possibility of regulatory actions being a sector-wide overhang, given past events at other large banks.
Despite this, Jefferies maintained that ICICI Bank remains structurally well placed because of its strong capital buffers, diversified loan book and robust internal leadership.
