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Motilal Oswal recommends 'Buy' on ICICI Bank; sees an upside of nearly 17%

Motilal Oswal recommends 'Buy' on ICICI Bank; sees an upside of nearly 17%

Motilal Oswal Securities Ltd (MOSL) has issued a 'Buy' recommendation for ICICI Bank, setting a target price of Rs 1,350 per share. Motilal Oswal's positive outlook on the bank is driven by its strong loan and fee growth, robust asset quality, among other factors.

June 21 marked the fourth consecutive session of gain for ICICI Bank. The stock closed flat at Rs 1,157.50 in the previous session. The stock has gained 16 percent in the past six months, outperforming Nifty 50, which gained nearly 10 percent during the same period.

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ICICI Bank's loan growth is expected to continue to be robust, Motilal Oswal said. The bank is likely to emphasise quality underwriting.

The bank's liability momentum remains strong and it is committed to leveraging superior technology to aid customer acquisition, pointed out Motilal Oswal.

The brokerage expects ICICI Bank's Net Interest Margins (NIMs) to remain rangebound in the near term.

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ICICI Bank's fee income growth has remained steady. Additionally, operating leverage is emerging as a key lever for the bank, with a focus on 'Return on Effort', said Motilal Oswal.

The bank's asset quality remains robust, with credit costs expected to normalise gradually, according to Motilal Oswal.

On April 27, ICICI Bank reported a net profit of Rs 10,707 crore for Q4 FY24, a 17 percent increase from Rs 9,122 crore in the same period last year.

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