CLSA has reiterated its Outperform rating on ICICI Bank, with a target price of ₹1,700, indicating a 19% upside from the current market price of ₹1,426.70. The brokerage noted that the bank delivered another strong quarter, with both net interest income (NII) and core pre-provision operating profit (PPOP) exceeding estimates by 4–7%.
Importantly, ICICI Bank was the only bank under CLSA’s coverage to report sequential NII growth, even in a sharp rate cut environment. Adjusted for one-offs, net interest margin (NIM) declined just 5 basis points QoQ, significantly better than the 11–13bps compression seen among peers.
That said, loan growth moderated to 11–12% year-on-year, reflecting weak demand conditions and the bank’s ongoing focus on profitable, selective growth. Deposit growth also slowed slightly from 14% to 13% as the bank reduced its reliance on wholesale deposits.
Asset quality remained stable, reinforcing CLSA’s positive view. The brokerage continues to back ICICI Bank’s strong fundamentals, prudent growth strategy, and margin resilience, which it believes will drive re-rating over the medium term.
Disclaimer: The brokerage view is based on publicly available research and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
