ICICI Bank's solid Q3 earnings impresses brokerages, ushers bullishness over asset quality, superior growth

ICICI Bank reported 15 percent profit growth and 9 percent increase in NIIs in Q3.

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26 Aug, 2025 12:21

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ICICI Bank delivered another quarter, marked by steady earnings growth which impressed brokerages across the Street. Analysts were particularly bullish over the lender's stable asset quality and superior growth as compared to peers.

Shares of ICICI Bank also opened nearly 1 percent higher in trade on January 27. At 09.34 am, the stock was trading at Rs 1,216.95 on the NSE.

India's second-largest lender, ICICI Bank, showcased stable asset quality in Q3FY25, with its gross non-performing assets (NPA) ratio improving to 1.96 percent, down from 1.97 percent in the previous quarter and 2.3 percent a year ago. The net NPA held steady at 0.42 percent sequentially, reflecting an improvement from 0.44 percent a year earlier.

The bank reported a robust 15 percent year-on-year increase in net profit to Rs 11,792 crore. Net interest income (NII) grew by 9 percent on year to Rs 20,371 crore, although the net interest margin (NIM) saw a slight dip to 4.25 percent in the December quarter, compared to 4.27 percent in the previous quarter and 4.43 percent in the same period last year.

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Brokerages, including the likes of Kotak Institutional Equities, Nuvama Institutional Equities, CLSA, Bernstein, Jefferies and JPMorgan, commended the lender's solid all-round performance in Q3, prompting the firms to retain their 'buy' or and equivalent 'outperform' call on the stock.

Kotak Institutional Equities, which has a price target of Rs 1,500 for ICICI Bank was impressed by the lender's execution that it believes to have led to its best in-class metrics. Jefferies also highlighted the lender's asset quality which according to the brokerage, held up well when compared to other banks. Jefferies has a price target of Rs 1,600 for the stock.

On the other hand, Bernstein noted that ICICI Bank's return on assets (RoA)remains significantly higher than its peers, driving a 14 percent EPS growth for the lender. The stellar RoA run was once again aided by cost control, Bernstein stated. The brokerage has assigned a price target of Rs 1,440 for the stock.

Bernstein also believes that the lender's pristine asset quality offset the slight fall in its NIMs in Q3. The firm further feels that ICICI Bank's high CASA (Current Account Savings Account) growth paints a good picture for the lender.

JPMorgan echoed similar sentiments, highlighting that ICICI Bank's CASA growth was well ahead of the industry. JPMorgan also raised its target price on ICICI Bank to Rs 1,500. Nuvama also expressed bullishness over ICICI Bank, banking on its strong CASA growth, especially at a time when peers are staring at a decline. Nuvama has a price target of Rs 1,470 for the stock.

Also Read | ICICI Bank clocks another steady quarter, expects stable unsecured retail portfolio ahead

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