Morgan Stanley has reiterated its overweight rating on ICICI Bank with a target price of ₹1,800 per share, implying a potential upside of about 27.0% from the current market price of ₹1,417.20.
The brokerage expects a gradual acceleration in loan growth supported by interest rate cuts, regulatory easing, and fiscal incentives. It noted that net interest margins are likely to continue moderating in Q2 as the impact of repo rate cuts flows through, though this will be partly offset by deposit repricing.
On the asset quality front, Morgan Stanley highlighted improvements in unsecured lending and said delinquency levels remain benign in business banking and SME portfolios, strengthening the bank’s overall credit profile.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
