Brokerages remained upbeat on private lender ICICI Bank Ltd. after its June quarter of financial year 2027 (Q1FY7) earnings, with Citi raising its target price and Kotak Securities and Bernstein reiterating their positive view, citing broad-based loan growth, resilient margins and stable asset quality.
Analysts said the private lender continued to outperform on the metrics that matter most, delivering another quarter of healthy earnings growth despite a challenging interest-rate environment. Strong momentum in business banking, improving retail credit demand and sustained deposit growth reinforced confidence that the bank's growth trajectory remains intact.
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While brokerages acknowledged a seasonal uptick in slippages, they noted that credit costs remained well contained and margin performance held up better than expected, supporting another quarter of strong profitability.
Brokerages Decode
Bernstein
- Maintained Market-Perform with a target price of Rs 1,550.
- Said ICICI Bank delivered the strongest loan growth among large private banks, led by business banking and a recovery in retail lending.
- Highlighted accelerated deposit growth, with an improving loan-to-deposit ratio supporting balance sheet expansion.
- Noted that net interest margins expanded despite an already elevated base, aided by funding costs declining faster than asset yields.
- Said fee income growth remained healthy, while asset quality stayed stable, supporting another quarter of strong earnings delivery.
Citi
- Maintained Buy and increased the target price to Rs 1,770 from Rs 1,720.
- Said earnings beat expectations, driven by resilient core net interest margins, robust fee income, contained credit costs and accelerating loan growth.
- Noted that loan growth was broad-based, led by business banking, corporate banking and rural lending.
- Said deposit momentum remained strong, with FCNR mobilisation underway.
- Added that treasury contribution during the quarter remained modest.
Kotak Securities
- Maintained Buy with a target price of Rs 1,800.
- Said the bank has "shifted back into top gear."
- Highlighted stable net interest margins, with earnings growth supported by lower provisions.
- Said ICICI Bank continues to outperform on the operating metrics that matter the most.
- Expects the bank's operational outperformance to continue, though relative valuations may limit multiple expansion.
ICICI Bank Q1 Show
ICICI Bank reported a 16% year-on-year increase in net profit to Rs 14,805 crore in the June quarter, while net interest income rose 13% to Rs 24,384 crore, supported by healthy credit growth. Operating profit increased 9% year-on-year to Rs 20,386 crore, while provisions declined 31% to Rs 1,260 crore.
The bank's net interest margin improved to 4.36% from 4.32% in the previous quarter, while gross non-performing assets eased to 1.38%. Return on assets rose to 2.49%, and the bank reported a treasury gain of Rs 151 crore, compared with a loss in the preceding quarter.
ICICI Bank Management Commentary
Management said loan growth momentum has picked up across the banking system and expects it to continue, while guiding for range-bound net interest margins and cost of funds.
The bank also said it remains focused on risk-calibrated growth and expanding fee income, with the recently launched FCNR mobilisation programme expected to gather pace over the next eight to ten weeks.
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