Jefferies has reaffirmed its ‘Buy’ rating on ICICI Bank and raised the target price to ₹1,710, citing continued strength in earnings. The bank reported a profit of ₹126 billion for the fourth quarter, marking an 18% year-on-year growth.
Key positives highlighted by Jefferies include a 13% YoY growth in CASA deposits and a 16 basis point quarter-on-quarter expansion in NIM, driven by fewer working days, a CRR cut, and lower non-performing loans in the Kisan Credit Card (KCC) portfolio.
Asset quality continues to hold up well, with core retail slippages declining sequentially. Despite the positive trends, Jefferies has trimmed FY26-27 EPS estimates by 5% to reflect the timing gap in interest rate transmission and expected rate cuts.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
