ICICI Bank Shares Up 2% As Q3 Earnings Impresses D-Street; Check Latest Target Prices – News18
Last Updated:
ICICI Bank posted another solid quarter, delivering consistent earnings growth that impressed analysts across the board
ICICI Bank
ICICI Bank posted another solid quarter, delivering consistent earnings growth that impressed analysts across the board. The lender’s stable asset quality and superior growth compared to its peers were key highlights, with brokerages expressing confidence in its performance.
India’s second-largest private sector lender reported a 14.8% year-on-year (YoY) rise in its standalone Q3 profit after tax, reaching Rs 11,792 crore.
Shares of ICICI Bank opened nearly 2% higher on January 27. By 10:34 am, the stock was trading at Rs 1,266.95 on the NSE.
Net interest income (NII) for the quarter grew 9.1% YoY to Rs 20,371 crore. Its net interest margin stood at 4.25% in Q3 FY25, compared to 4.27% in Q2 FY25 and 4.43% in Q3 FY24. The net NPA ratio remained stable at 0.42%, while the provisioning coverage ratio on non-performing loans stood at 78.2% by December’s end.
ICICI Bank’s total period-end deposits grew 14.1% YoY and 1.5% sequentially, totaling Rs 15,20,309 crore. Average deposits increased by 13.7% YoY and 2.1% sequentially to Rs 14,58,489 crore during the quarter.
Net domestic advances grew by 15.1% YoY and 3.2% sequentially. The retail loan portfolio rose 10.5% YoY and 1.4% sequentially, comprising 52.4% of the total loan book.
Brokerages like Kotak Institutional Equities, Nuvama Institutional Equities, CLSA, Bernstein, Jefferies, and JPMorgan praised ICICI Bank’s strong performance in Q3, maintaining ‘buy’ or ‘outperform’ ratings on the stock.
Kotak Institutional Equities, with a target price of Rs 1,500, was particularly impressed by ICICI Bank’s execution, which they believe led to its best-in-class metrics. Jefferies also commended the lender’s asset quality, noting that it outperformed other banks, assigning a target price of Rs 1,600.
Bernstein pointed out that ICICI Bank’s return on assets (RoA) remained significantly higher than its peers, driving 14% EPS growth. The brokerage assigned a price target of Rs 1,440, noting that the bank’s high CASA (Current Account Savings Account) growth is a positive indicator for the future.
JPMorgan echoed similar views, highlighting that ICICI Bank’s CASA growth outpaced the industry. They raised their target price to Rs 1,500, while Nuvama set a target of Rs 1,470, bolstered by the lender’s impressive CASA growth amid challenges faced by its peers.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
