Citi has reaffirmed its ‘Buy’ rating on ICICI Bank, with a target price of ₹1,547. With the current market price (CMP) at ₹1,338, the report outlines key growth drivers for the bank, driven by sustained momentum in business banking, MSME, and corporate segments.
The management continues to focus on Risk-Adjusted Return on Capital (RaROC) while maintaining a comfortable liquidity position with LCR (Liquidity Coverage Ratio) at 123% and LDR (Loan-to-Deposit Ratio) at 85%. Despite expectations of deposit cost catch-up, ICICI Bank’s net interest margins (NIM) are anticipated to remain range-bound with slight moderation in Q2.
The report suggests that increased deposit costs will be partially offset by lower drag on interest reversal, reinforcing the bank’s solid fundamentals and continued growth outlook.
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