ICICI Bank shares will be in focus after Citi reiterated its Buy rating on the stock, with a target price of ₹1,650. The stock last closed at ₹1,461.00.
Following a recent management interaction, Citi highlighted several key positives. The brokerage noted that while a net interest margin (NIM) contraction is inevitable, it is expected to bottom out by Q3. The bank’s strategy to offset this includes deposit rate cuts, CASA growth, and an expanded unsecured lending portfolio.
Citi also expects business banking to maintain robust growth momentum, with unsecured segments likely to rebound from the FY25 lows. Importantly, the stress in unsecured loans has stabilized, and improvement is expected over the next two to three quarters.
Management is guiding for a credit cost of 45-50 basis points, with only gradual normalization from current levels. Citi added that ICICI Bank is targeting sustained profitability (PAT) and market share gains, while maintaining a return on assets (ROA) above 2%.
Overall, Citi remains positive on ICICI Bank’s structural strengths and sees scope for continued earnings delivery.
Disclaimer: The views and investment recommendations expressed above are those of the respective brokerage firm. Business Upturn does not endorse or offer any investment advice. Investors should consult their financial advisors before making any investment decisions.
