ICICI Bank's December quarter performance drew largely supportive commentary from brokerages, with analysts looking past the near-term impact of one-off provisions and focusing on improving loan growth momentum, strong deposit traction and clarity on leadership. The reappointment of Managing Director and CEO Sandeep Bakhshi for another two years emerged as a key positive, offering stability at a time of intensifying competition in the banking sector.

ICICI Bank Q3 Highlights

• Profit misses estimates; Asset quality steady; Provisions elevated.
• NII up 7.7% at Rs 21,932 crore YoY; NIM flat at 4.30%.
• Operating Profit up 3% at Rs 17,356 crore YoY.
• Provisions at Rs 2,556 crore versus Rs 914 crore QoQ.
• Gross NPA at 1.53% versus 1.58% QoQ; Net NPA at 0.37% versus 0.39% QoQ.
• Net Profit down 4% at Rs 11,318 crore versus Rs 11,792 crore YoY.
• Total advances up 11.5% YoY to Rs 14.66 lakh crore; Deposits up 9.2% YoY to Rs 16.59 lakh crore.

What Are Brokerages Saying?

Kotak Securities maintained its 'buy' rating on ICICI Bank with a target price of Rs 1,800, describing the quarter as one marked by a significant board decision in the backdrop of soft results. The brokerage noted that net interest margins remained stable, while earnings growth was muted due to one-off provisions. Kotak said stable leadership provides comfort as competitive intensity rises across the system, allowing the bank to stay focused on execution and growth priorities.

Morgan Stanley reiterated its 'overweight' rating with a target price of Rs 1,800, highlighting an acceleration in loan growth during the quarter. The brokerage underscored the reappointment of Bakhshi as CEO for another two years, saying it provides clarity around the bank's leadership. With leadership uncertainty addressed, Morgan Stanley expects the bank's focus to be solely on loan growth, where it sees improving traction. It also pointed to strong deposit growth across CASA as well as retail deposits, adding that profitability and asset quality remain robust.

BofA maintained a 'buy' rating on the stock with a target price of Rs 1,750, noting that Q3 saw a headline miss driven by one-off provisions, while core return on assets remained stable at 2.3%. The brokerage said core earning drivers remain healthy, supported by the two-year extension of the CEO's term and a strong recovery in loan growth. However, it flagged higher credit costs during the quarter, attributing them to one-off provisioning.

Overall, brokerages said ICICI Bank's fundamentals remain intact, with leadership continuity, improving loan growth and resilient profitability expected to support performance beyond the near-term noise from one-off provisions.

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