Buy ICICI Bank; target of Rs 1200: Sharekhan

Sharekhan is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1200 in its research report dated January 20, 2024.

Broker Research

January 23, 2024 / 12:34 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on ICICI Bank

ICICI Bank clocked another steady quarter led by consistent loan growth (+18% y-o-y /4% q-o-q) and lower credit costs (37 bps of loans), maintaining its robust asset quality with an RoA of 2.3%. Asset quality trends remained stable despite higher slippages (2.3% vs 2.0% q-o-q), mainly due to higher recoveries & upgrades. Net slippages were at Rs. 363 crore vs. Rs. 116 crore q-o-q. NIMs fell by 10 bps q-o-q / 22 bps y-o y to 4.43%. Thus, core PPoP growth was muted at 10% y-o-y/2% q-o-q. Total deposits grew by 19% y-o-y/ 3% q-o-q, driven by term deposits (~5% q-o-q). CASA balances were flat q-o-q.

Outlook

We maintain a Buy with an unchanged PT of Rs. 1,200. The stock trades at 2.2x/1.8x its FY2025E/FY2026E core BV estimates. NIM pressure is likely to persist in the near term, but we still see the bank sustaining RoA over ~2% in near to medium term.

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