Brokerages have largely reaffirmed their positive view on ICICI Bank following its Q1FY26 results, citing strong core operating performance, resilient margins, and stable asset quality. While loan growth moderated in a weak demand environment, the bank’s emphasis on profitable lending and cost discipline has kept investor sentiment intact.
Here’s what the top brokerages are saying:
Nomura – Buy | Target: ₹1,740 | Upside: 22%
Nomura called it a strong all-round performance, driven by strong NII, healthy fee income, and lower operating expenses. Asset quality remained stable, and the bank trades at 2.6x one-year forward book value per share (BVPS), a 50% premium to its 10-year average—something Nomura believes is justified given clear visibility of 16% RoE over FY26–28F.
CLSA – Outperform | Target: ₹1,700 | Upside: 19%
CLSA noted ICICI Bank’s ability to deliver sequential NII growth, despite the rate cut environment—a feat unmatched by other banks in its coverage. Core PPOP and NIMs also beat expectations. While loan growth moderated to 11–12%, the bank’s focus on quality lending and stable asset quality led CLSA to maintain its bullish stance.
Nuvama – Buy | Target: ₹1,670 | Upside: 17%
Nuvama noted that ICICI Bank was the only lender to beat NIM estimates, with a core NIM drop of just 4bps vs the expected 12–15bps. NII rose 2% QoQ, and core PPOP increased 11% YoY. The brokerage highlighted ICICI’s strong liability management and consistent delivery of sector-leading profitability.
Goldman Sachs – Neutral | Target: ₹1,660 | Upside: 16%
Goldman Sachs called it a well-managed quarter, driven by better investment spreads that offset lending margin pressure. It flagged slower loan growth and the impact of further rate cuts as areas to watch. Though positive on ICICI’s execution, GS maintained a Neutral rating citing limited near-term re-rating potential.
Bernstein – Market Perform | Target: ₹1,440 | Upside: 1%
Bernstein praised ICICI’s steady profitability, with RoA holding above 2.4% and EPS growing 14% YoY, partly helped by treasury gains. It noted that despite slower loan growth, the bank’s strategy of prioritizing profitability over volume continues to justify its premium valuation. However, it stopped short of a bullish call, citing limited re-rating headroom.
Brokerage Summary:
| Brokerage | Rating | Target Price (₹) | Upside from CMP (₹1,426.70) |
|---|---|---|---|
| Nomura | Buy | 1,740 | +22% |
| CLSA | Outperform | 1,700 | +19% |
| Nuvama | Buy | 1,670 | +17% |
| Goldman Sachs | Neutral | 1,660 | +16% |
| Bernstein | Market Perform | 1,440 | +1% |
While two brokerages—Goldman Sachs and Bernstein—strike a more cautious tone, the broader consensus remains bullish. Strong margin management, stable asset quality, and profit-first growth strategy make ICICI Bank one of the top picks in the private banking space.
Disclaimer: The brokerage views expressed are based on publicly available research reports and do not constitute investment advice. Readers should consult a certified financial advisor before making any investment decisions.
