Bernstein has maintained a Market Perform rating on ICICI Bank with a target price of ₹1,440, suggesting limited upside from the current market price of ₹1,426.70. The brokerage noted that the bank continues to prioritize profitability over aggressive growth, a strategy that has helped maintain Return on Assets (RoA) above 2.4% in Q1FY26.
Although loan growth moderated to 11.5% YoY, ICICI Bank delivered a 14% YoY EPS growth, beating expectations. This was aided by treasury gains, which more than offset the impact of credit cost normalization and modest operating expense growth.
In light of the recent concerns following Axis Bank’s performance, Bernstein said ICICI’s stable asset quality came as a relief and reinforces investor confidence in the bank’s strategic approach. The firm believes ICICI’s disciplined execution and consistent profitability justify its premium valuation but stopped short of a bullish call, citing muted near-term re-rating potential.
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.
