Nomura has maintained a ‘Buy’ rating on ICICI Bank and revised its target price upwards to ₹1,690, citing a robust March quarter performance. The brokerage praised the bank’s steady margins, healthy asset quality, and overall sector-leading metrics. However, it did flag a marginal moderation in loan growth.
Looking ahead, Nomura now factors in a more aggressive monetary policy scenario, projecting 125 basis points of repo rate cuts in FY26. As a result, it expects net interest margins (NIMs) to compress by 16 basis points in FY26 and 5 basis points in FY27 to 4.07% and 4.16%, respectively.
Despite trimming FY26–27 earnings per share (EPS) estimates by 3–5%, Nomura believes ICICI Bank’s superior execution across asset quality, deposit growth, and return ratios positions it above most peers in the sector.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
