Buy ICICI Bank; target of Rs 1105: HDFC Securities

HDFC Securities is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1105 in its research report dated January 20, 2023.

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January 23, 2023 / 22:03 IST

26 Aug, 2025 12:21

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HDFC Securities' research report on ICICI Bank

ICICI Bank (ICICIBC) reported yet another quarter of all-round impressive balance sheet performance with loan growth (+20% YoY), NIMs (4.7%) and asset quality (GNPA at 3.1%), reflecting in strong profitability vectors (standalone RoE of ~18%). Net slippages continued to remain benign (+0.5% annualised); however, the bank further shored up its contingent provisions, taking the stock of contingent provisions prudently to 130bps. Given the benign credit cycle, we believe that the bank is currently witnessing a profitability overshoot, which is difficult to sustain. With deposit mobilisation lagging loan growth and timing differences in repricing, we believe that peak NIMs are now behind (expecting moderation in FY24E).

Outlook

We tweak our FY23E/FY24E earnings estimates by 2-5% and maintain BUY with an SOTP-based TP of INR1,105 (standalone at 3.0x Sep24 ABVPS).

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