'Buy' ICICI Bank Shares Maintains Motilal Oswal, Sees Upto 20% Potential Upside — Check Target Price

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Motilal Oswal Report

ICICI Bank Ltd. has been reporting a stellar performance for the past few years, irrespective of the sectoral challenges such as unsecured asset quality issues, systemic growth moderation, liability accretion or net interest margin headwinds.

During Q1 FY26, the controlled NIM decline of 7bp was another solid beat in that series, compared to a double-digit contraction reported by many peers.

The continued improvement in asset mix, limited NIM compression and healthy growth in Business Banking and select retail segments position the bank well to deliver robust profitability.

The bank’s investment in technology has resulted in consistent productivity gains and steady improvement in cost ratios. Asset quality remains under control, while the bank continues to carry a contingency provisioning buffer of Rs 131 billion (1.0% of loans).

We estimate ICICI Bank to deliver RoA/RoE of 2.3%/16.7% in FY27 and retain our Buy rating with a SoTP-based target price of Rs 1,670 (2.7x FY27E adjusted book value + SOTP of Rs 270).

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