After a string of weak quarterly results this earnings season, ICICI Bank Ltd. It created positive surprises and led to an upward revision in target prices. Analysts said the private lender has outperformed Street estimates on many aspects such as asset quality, deposit growth, net interest margin (NIM) or best-in-class return on assets (ROA) and is poised for a re-rating in the future.

Nuvama Institutional Equities said ICICI Bank posted fairly strong numbers and lower sequential declines in Q2 FY25 even as other banks were struggling with slowdown in growth and rise in cost of credit. ICICI Bank’s strong loan growth of 4 percent on a quarterly basis and 15 percent on an annual basis, the decline in lagged decline from 2.1 percent to 1.7 percent, controlled operating expenses and the decrease in credit cost are the important positive points that stand out in the second quarter. It was stated that.

Core pre-provisioned operating PPoP increased 7 percent quarter-on-quarter or 13 percent year-on-year, one of the highest in the industry.

“ICICI’s results have been insulated from industry pressures such as deposit growth and deteriorating asset quality. The continued focus on granularity and quality assets has made ICICI’s balance sheet strong enough to deliver strong and consistent results every quarter since FY21. This has been followed in the industry We reiterate it as our top pick. Our target price is Rs 1,470/2.8x BV FY26E (previous Rs 1,450),” Nuvama said.

MOFSL said ICICI Bank has reported six “spectacular annual performances” since Sandeep Bakhshi took over as MD and CEO on October 15, 2018. The bank has consistently outperformed Street forecasts on one metric or another, even as the macro environment has changed significantly, the brokerage firm said, and that’s been the case over the years.

“We are increasing our EPS estimates for FY25/26 by 2.8 per cent/1.8 per cent and estimate equity/profitability ratio at 2.19 per cent/17.4 per cent in FY26 at Rs 1,500 as against Rs 1,400 earlier. “Reiterate Buy with Rupee SoTP based target price,” he said.

PL Capital said ICICI Bank remains the best performing bank in the industry and requires re-rating.

PL Capital said while the unsecured pool experienced system-wide stress, the bank’s portfolio outperformed large private peers in the second half, reflected in best-in-class provisions of 43 basis points versus private peers’ 50-78 basis points. .

“Therefore, provisions for FY24-27 may be lower by 40-50 basis points (peer-to-peer 50-65 basis points). The bank continues to maintain core PPoP on an ongoing basis as the softer NIM environment is countered by cost control measures 2.1 per core ROA PL Capital reiterated “Buy” and added that they increased the target price from Rs 1,520 to Rs 1,640 by holding it more than 3 times.

ICICI Bank reported a 14.47 percent increase in net profit to Rs 11,746 billion compared to Rs 10,261 billion in the same quarter last year, driven by treasury earnings. Net interest income (NII) in the quarter increased by 9.5% year-on-year from Rupees 18,308 billion to Rupees 20,048 billion. Net interest margin (NIM) for the quarter stood at 4.27 per cent, compared to 4.36 per cent in the June quarter and 4.53 per cent in the same quarter a year ago.

ICICI Bank: Nirmal Bang said the lender’s second-quarter profit was more than 7 per cent ahead of both its own and consensus estimates. It was stated that NII growth was in line with its forecasts, but PPoP was 4 percent above forecasts.

“We value ICICI Bank at 2.9 times September 2026E ABV, resulting in a standalone value of Rs 1,344 per share. By adding subsidiary value of Rs 201 per share, we arrive at a target price of Rs 1,545 as against Rs 1,544 previously. Target “Our multiple Nirmal Bang is at a 10 per cent premium to its multiples of 2.6 times the last 5-year average, which adequately captures a Compound Growth Rate of 12.7 per cent gain over FY24-FY27,” he said.

This brokerage firm predicts that ICICI Bank’s earnings will be driven by credit CAGR of 15.1 per cent, NIM of 4.2 per cent, stable operating expense ratios and average credit cost of 58 basis points, hence the average between FY24-27. It will lead to an average RoA of 2.3 per cent, Nirmal Bang said while recommending ‘Buy’ on the stock.