Net interest income (NII) increased 9.5% year-on-year (YoY) to Rs 20,048 crore in Q2FY25, up from Rs 18,308 crore in Q2FY24. Meanwhile, the net interest margin was reported at 4.27% in Q2FY25, compared to 4.36% in Q1FY2025 and 4.53% in Q2FY24.
ICICI Bank reported an average deposit growth of 15.6% YoY, totaling Rs 14,28,095 crore as of September 30, 2024. The domestic loan portfolio grew by 15.7% YoY to Rs 12,43,090 crore, the lender stated in its quarterly results filing.
The net NPA ratio was 0.42% as of September 30, 2024, compared to 0.43% as of June 30, 2024. The provisioning coverage ratio on non-performing loans was 78.5% as of September 30, 2024.
Should you buy, sell, or hold ICICI Bank’s stock? Here’s what analysts say:
Investec
Investec maintained a ‘Buy’ rating on ICICI Bank, raising its target price to Rs 1,450 from Rs 1,350. The bank continues to outperform its peers across various metrics. A positive surprise on credit costs has led to a Return on Assets (RoA) beat, while credit and deposit growth remain robust. However, net interest margins (NIMs) have declined due to higher incremental costs of funds.
Jefferies
Jefferies has maintained its ‘Buy’ rating on ICICI Bank, raising the target price from Rs 1,460 to Rs 1,550. The bank’s growth in deposits is supporting loan expansion, and its asset quality has held up better than expected. Operating efficiencies are further aiding profitability, keeping ICICI Bank among Jefferies’ top picks.
Nomura
Nomura maintained its ‘Buy’ rating on ICICI Bank, raising the target price from Rs 1,420 to Rs 1,575. The bank reported a flawless quarter, positioning it a cut above its peers, with strong loan and deposit growth and robust asset quality performance. Nomura expects premium valuations to sustain, projecting ICICI Bank to achieve a sector-leading 2.3% RoA and 18% RoE over FY25-27.
Macquarie
Macquarie maintained its ‘Outperform’ rating on ICICI Bank, with a target price of Rs 1,350. The bank has successfully passed stress tests while sustaining growth and maintaining tightly controlled asset quality. Its PAT beat was driven by treasury income and low credit costs, though the trajectory of NIMs remains a key focus for investors.
IIFL
IIFL upgraded its rating on ICICI Bank from ‘Add’ to ‘Buy,’ raising the target price to Rs 1,480 from Rs 1,370. The upgrade is driven by three key factors: (1) anticipated higher pressure on net interest margins (NIMs) relative to peers has largely materialized; (2) the bank has recently cut operating expenses significantly; and (3) asset quality is improving beyond expectations. Despite ICICI Bank’s projected 20-25% higher profitability for FY26, its valuation premium to HDFC has narrowed to 9%.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own and do not represent the views of The Economic Times.)
