Buy ICICI Bank; target of Rs 1638: LKP Research

LKP Research's research report on ICICI Bank

ICICI Bank reported strong financial results for Q4 and FY25, marked by growth in net interest income (NII), fee income, improved operational efficiencies, and robust profitability. The bank witnessed healthy growth in both deposits and loans, although retail loan growth moderated, particularly in the unsecured segments, due to a more cautious lending approach. As a result, asset quality improved notably, and is expected to remain healthy, supported by stringent credit underwriting standards. While margins remain strong, repo rate cut cycles could exert short-term pressure.

Outlook

However, over the medium to long term, ICICI Bank is well-positioned to outpace system credit growth, driven by its agile technology platform and steadily expanding distribution network. Supported by a favourable macroeconomic backdrop, we maintain our BUY rating on the stock, with a Sum-of-the-Parts (SOTP)-based target price of ₹1,638

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