Buy ICICI Bank; target of Rs 1100: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on ICICI Bank

ICICIBC has been the best performer in the Banking sector (despite the consensus Buy tag) as it delivered 80%/42% returns over FY21/FY22 YTD. Its market capitalization ranking within the BFSI space has improved to two from five in FY18. Stability of the top management has helped improve its operational performance. Mr. Sandeep Bakhshi's appointment as CEO has brought stability which enabled value creation and drove re-rating as bank delivered 31% CAGR in m-cap since FY18-21 v/s 7% over FY10-18. It has reported strong progression in NIMs, narrowing the gap with sector leaders. With a higher mix of floating rate loans and our view on a reversal in the rate cycle, we expect portfolio yields to remain steady, driving 20% CAGR in NII over FY21-24E. NNPA declined to sub-1% - the lowest level since Dec'14 while PCR has improved to ~80.3% - among highest in the industry. We estimate GNPA/NNPA ratio to moderate to 3.8%/0.7%, while Prov./PPOP ratio sustains ~25% over FY22-24E.

Outlook

We expect it to deliver 18%/20% CAGR in loans/PPOP over FY22-24E, while RoA reaches the 2% milestone. We reiterate ICICIBC as our top Buy with a TP of INR1,100.

More Info on Trent

At 16:00 hrs ICICI Bank was quoting at Rs 823.35, up Rs 3.95, or 0.48 percent.

It has touched an intraday high of Rs 836.00 and an intraday low of Rs 818.25.

It was trading with volumes of 469,894 shares, compared to its thirty day average of 730,063 shares, a decrease of -35.64 percent.

In the previous trading session, the share closed down 0.10 percent or Rs 0.80 at Rs 819.40.

The share touched its 52-week high Rs 859.70 and 52-week low Rs 512.10 on 25 October, 2021 and 28 January, 2021, respectively.

Currently, it is trading 4.23 percent below its 52-week high and 60.78 percent above its 52-week low.

Market capitalisation stands at Rs 571,718.35 crore.For all recommendations report, click here

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