The shares of ICICI Bank gained over 1% on Thursday to trade at Rs 1,258.40 apiece on NSE. The stock has however fallen over 1% in one week and 6% in 2026 so far. The stock has fallen more than 12% in one year.
ICICI Bank’s liability franchise continues to remain best-in-class, supported by diversified acquisition engines and a rapidly expanding physical network, Motilal said. With a domestic CD ratio of 85.5% and LCR of 126%, the brokerage added that the bank is well placed to capitalize on growth opportunities compared to peers.
“ICICI Bank is likely to maintain cost leadership despite meaningful investments in technology, customer delivery, analytics, and talent. ICICIBC’s asset quality remains robust, supported by disciplined underwriting, continued monitoring, and strong recoveries, while the bank maintains a healthy contingency buffer (0.9% of loans). The bank currently does not face additional portfolio stress from the West Asia crisis or ECL transition. Credit costs are, thus, expected to remain contained, with GNPA/NNPA improving to ~1.4%/0.3% by FY28E,” Motilal said.
The brokerage acknowledged that ICICI Bank shares have delivered tepid performance over the past year, reflecting broader derating across large banking stocks amid persistent FII selling. However, with operating performance holding strong and sustained market share gains across key lending segments, Motilal expects a gradual rerating.
It maintained its ‘Buy’ call on the stock, with a target price of Rs 1,750 apiece. This implies an upside potential of nearly 41% from the stock’s previous closing price of Rs 1,242 apiece on NSE.
