Net interest income (NII) grew 10.6% YoY to Rs 21,635 crore, while net interest margin stood at 4.34%, slightly lower than 4.41% in the previous quarter. Core operating profit rose 13.6% YoY to Rs 17,505 crore.
Provisions (excluding tax) increased to Rs 1,815 crore from Rs 1,332 crore a year ago. Average deposits rose 11.2% YoY to Rs 15.33 lakh crore, with the CASA ratio at 38.7%.
The domestic loan portfolio expanded 12% YoY to Rs 13.31 lakh crore. Gross NPA improved to 1.67% from 2.15% a year earlier, while net NPA stood at 0.41%. Provision coverage ratio remained healthy at 75.3%.
Retail loans grew 6.9% YoY and formed 52.2% of the total loan book. Total advances rose 11.5% YoY to Rs 13.64 lakh crore.
Should you buy, sell, or hold ICICI Bank’s stock? Here’s what analysts say:
Bernstein
Bernstein has maintained an ‘Outperform’ rating with a target of Rs 1,440.
The brokerage highlighted strong margins despite subdued growth. While credit costs inched up, asset quality remained resilient, easing concerns following the Axis Bank episode. Bernstein believes the stock’s premium valuation is justified.
Antique
Antique has reiterated a ‘Buy’ rating and raised the target price to Rs 1,680 from Rs 1,640.
It cited strong NIM and profitability, although loan growth has moderated in line with broader industry trends. Some recovery is expected in 2HFY26. The brokerage expects RoA of 2.3–2.4% and RoE of 16–17% over FY27–28E. It has slightly trimmed FY26–27 earnings estimates and introduced FY28 forecasts based on a 2.5x 1HFY28 book value.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
