ICICI Bank shares surged 2% after Citi maintained its ‘Buy’ rating with a target price of ₹1600. The global brokerage remains optimistic about the bank’s strong operational outlook following a recent management interaction.
Citi highlighted ICICI Bank’s resilience in navigating near-term rate cuts. The bank anticipates a potential 50bps repo rate reduction to impact net interest margins (NIMs) by only 20-25bps in FY26. Management expects a positive NIM bias in Q4, indicating potential earnings stability.
Unsecured loan stress is stabilizing, and a major corporate recovery could support lower credit costs. The bank anticipates a gradual normalization of credit costs from FY26 onward. Additionally, ICICI Bank is enhancing unsecured retail products, focusing on in-house personal loan sourcing and increasing credit card penetration.
On the liability front, deposit mobilization remains robust, ensuring adequate liquidity for risk-adjusted loan growth. The bank is also ramping up franchise investments, including marketing and promotions. While this may elevate operating expenses in the short term, the cost-to-income ratio is expected to stay stable.
Citi emphasized that ICICI Bank remains one of the most well-managed large private banks in India, reinforcing its strong growth potential.
ICICI Bank shares touched a fresh 52-week high of ₹1,373.00 on Monday, signaling strong investor sentiment. The stock opened at ₹1,355.95 and dipped to an intraday low of ₹1,345.05 before rebounding. Over the past year, the shares have shown significant growth, rising from a 52-week low of ₹1,048.10.
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