Citi has maintained a ‘Buy’ rating on ICICI Bank with a target price of ₹1,600/share, citing insights from the bank’s recent management meet. The brokerage highlighted that ICICI Bank expects stabilization in unsecured lending NPL formation over the next couple of quarters, with card delinquencies rising modestly but business banking remaining stable. Despite system-wide moderation in credit growth, particularly in personal loans, the bank foresees reasonable growth in mid-corporate and business banking segments while aiming to outpace system average growth by gaining market share.
ICICI Bank’s cost efficiencies continue to show results, with opex growth expected to lag income growth. While deposit rates have remained sticky, incremental spreads are being maintained, supporting profitability. Citi emphasized the bank’s focus on growing card spends, which aligns with its strategy to expand across retail segments. Overall, ICICI Bank’s balance of stable growth and prudent credit cost normalization supports Citi’s bullish outlook.
