Synopsis:
Emkay Global Financials gave ICICI Bank a BUY rating with a target price Rs. 1700, which is 22% upside from its current levels. ICICI remains one of the strongest players in the private banking space, with its sharp focus on profitability, digital leadership, and resilient asset quality.
This company is the second-largest private sector bank in India, offering a diversified portfolio of financial products and services to retail, SME, and corporate customers is now in the spotlight after Emkay Global Financials gave a BUY rating of 22% upside.
With a market capitalization of Rs. 9,97,694 cr, the shares of ICICI Bank Ltd are currently closed at Rs. 1,397 per share, from its previous closing of Rs. 1,394.20 per share.
Target & Rationale
ICICI Bank reported credit growth at ~12% YoY in Q1, driven by moderation in retail loans and weak corporate demand. However, its SME portfolio, up 30% YoY and now forming 20.5% of loans, has emerged as the key growth driver. The portfolio is largely skewed toward high-ticket, lower-risk loans, supporting asset quality even amid external headwinds. While home loan market share slipped due to higher pricing, realignment with peers should aid recovery. Overall loan growth is expected at ~11.5% in FY26, which is lower than earlier estimates, but still stronger than most peers.
Margins may see some pressure in a falling rate cycle, but ICICI continues to show better resilience through a superior asset-liability mix. The bank also differentiates itself with its focus on profitability over pure growth, improved employee retention, tech investments, and stronger cross-sell strategies (such as its 3-in-1 offering and higher savings account balances. These steps are driving a deeper customer franchise and higher value per customer.
With RoA expected at 2.1–2.3% over FY26-28, supported by cost control, core fee income, and contained credit costs, ICICI remains best-in-class among private banks. Management strength, digital leadership, and resilient asset quality add to its edge. The upcoming IPO of ICICI Prudential AMC is expected to unlock further value.
Emkay gave BUY with a revised target price of Rs1,700 (from Rs1,600), as the bank continues to warrant premium valuations versus peers. Near-term risks include slower growth and macro-driven asset quality pressures, but the long-term outlook remains very strong.
About the company
ICICI Bank Ltd is one of India’s largest private sector banks, offering a wide range of banking and financial services, including retail banking, corporate banking, and investment services. Known for its strong digital initiatives and extensive branch network, ICICI Bank plays a key role in India’s financial sector, serving millions of customers domestically and internationally.
The bank reported a 10% year-on-year rise in sales to Rs. 49,080 crore in Q1FY26, up from Rs. 44,582 crore in Q1FY25, while net profit increased 16% to Rs. 14,456 crore. Earnings per share also rose 14% YoY to Rs. 19.00, reflecting strong overall financial performance.
Written by Manideep Appana
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