ICICI Bank - Well Poised To Deliver Sustainable Growth, Profitability, 'Buy' Reiterates Motilal Oswal

Motilal Oswal Report

ICICI Bank Ltd. is poised for a superior performance, driven by healthy loan growth, strong asset quality, and industry-leading return ratios. While we anticipate margins to remain in pressure in the near term due to a potential rate cut and rising costs of funds, the bank's operating leverage is emerging as a key driver of earnings growth. With robust deposit inflows and a favorable credit-deposit ratio—the lowest among large private banks—ICICI Bank is well-positioned for profitable growth.

Its asset quality outlook remains steady, supported by robust underwriting standards, strong PCR, and a high contingency buffer of ~1% of loans.

We estimate ICICI Bank to achieve a CAGR of 15%/12% in pre-provision operating profit/PAT over FY25-27E, leading to RoA/RoE of 2.1%/16.7% in FY27.

ICICI Bank remains our top buy in the sector and we reiterate our Buy rating with a target price of Rs 1,550, based on 2.7 times Sep’26E adjusted book value.

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