Buy ICICI Bank; target of Rs 1190 HDFC Securities

HDFC Securities is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1190 in its research report dated October 20, 2023.

Broker Research

October 25, 2023 / 16:04 IST

Buy

26 Aug, 2025 12:21

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HDFC Securities' research report on ICICI Bank

ICICI Bank (ICICIBC) clocked another steady quarter on the back of consistent loan growth (+18% YoY) and lower credit costs (23bps of loans), maintaining its robust asset quality alongside a healthy PCR (~83%). Loan growth was driven by healthy deposit growth (+19% YoY), largely retail TDs as the CASA ratio eased to 40.8% (-222bps QoQ), resulting in a 22-bps QoQ spike in the cost of deposits. With limited yield reflation despite improving retail mix, NIMs softened by 25bps QoQ to 4.53% and are likely to trend further lower.

Outlook

We tweak our FY24E/FY25E forecasts to factor in the elevated cost of funds and opex intensity, largely offset by normalised credit costs (>40bps for each of FY24-25); we maintain BUY with a SOTP-based TP of INR1,190 (standalone at 2.9x Mar25 ABVPS).

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