Synopsis: The share of this banking company could gain up to 40 percent, backed by strong loan growth, improving margins, healthy deposits, and robust asset quality, according to Motilal Oswal.
The article outlines the rationale behind the MOSL’s bullish stance on this banking company, which is offering a diversified portfolio of financial products and services to retail, SME, and corporate customers
With a market capitalization of Rs 9,04,609 crore, ICICI Bank Ltd’s shares closed at Rs 1,262 per share, up by 0.70 percent from its previous close. The share of the company gave a negative return of 13 percent in the last year.
Brokerage View’s
Motilal Oswal has maintained its Buy rating on ICICI Bank with a target price of Rs 1,750, implying an upside potential of 40 percent. The brokerage remains positive on the bank’s growth outlook, strong asset quality, improving margins, and consistent market share gains across key business segments.
Strong Growth Outlook and Market Share Gains: Motilal Oswal believes ICICI Bank is well-positioned to maintain its leadership in the banking sector, supported by a healthy growth outlook. The brokerage expects the bank to continue gaining market share across key business segments through its broad-based growth strategy and strong execution capabilities.
Robust Liability Franchise Supports Expansion: According to the brokerage, ICICI Bank’s strong deposit franchise provides a solid foundation for future growth. With a comfortable Loan-to-Deposit Ratio (LDR) and Liquidity Coverage Ratio (LCR), the bank is well-equipped to support sustained loan growth while maintaining balance sheet strength.
Margin Improvement and Operating Leverage to Drive Earnings: Motilal Oswal expects the bank’s profitability to improve further, aided by its pricing power and stable margins. The brokerage also highlights operating leverage and growing fee income as key earnings drivers, with the cost-to-income ratio projected to improve to around 38 percent over the coming years.
Best-in-Class Asset Quality and Top Sector Pick: The brokerage remains positive on ICICI Bank’s asset quality, citing its controlled credit costs and strong underwriting standards. With robust fundamentals, healthy earnings visibility, and superior asset quality, Motilal Oswal has designated ICICI Bank as its top Buy pick within the banking sector.
Strong Fundamentals Support Growth
Strong Profitability in Q4 FY26: ICICI Bank delivered a strong earnings performance in Q4 FY26. Profit before tax excluding treasury increased 10.1 percent YoY and 21.7 percent QoQ to Rs 182.09 billion, while profit after tax rose 8.5 percent YoY and 21.1 percent QoQ to Rs 137.02 billion. Core operating profit also registered healthy growth during the quarter.
Healthy Credit and Deposit Growth: The bank continued to report broad-based business growth in Q4 FY26. Total advances grew 15.8 percent YoY and 6.0 percent QoQ, driven by strong momentum in business banking, retail, and corporate lending. Total deposits increased 11.4 percent YoY and 8.1 percent QoQ, supported by steady growth in average CASA deposits.
Asset Quality Remains Best-in-Class: ICICI Bank further strengthened its asset quality profile, with the net NPA ratio improving to 0.33 percent in Q4 FY26 from 0.37 percent in Q3 FY26. The bank maintained strong provisioning buffers, a provision coverage ratio of 75.8 percent, and a robust CET-1 ratio of 16.35 percent, supporting future growth. Supported by a strong Common Equity Tier 1 ratio of 16.35 percent.
ICICI Bank is one of India’s largest private sector banks, headquartered in Mumbai, offering a comprehensive range of retail and corporate banking products. Established in 1994 as a subsidiary of the Industrial Credit and Investment Corporation of India, it operates a vast domestic network alongside a global presence in over 15 countries.
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