ICICI Bank sees loan book and NII growth; Is it the right time to buy?

Synopsis:- Shares gained after Q4, backed by 8% NII growth, 16% QoQ earnings jump, and improved asset quality with GNPA at 1.4%. Brokerages see 15–33% upside with targets up to ₹1,800, supported by 2.4% RoA, stable margins, and 15–16% loan growth outlook.

The shares of the Indian multinational bank and financial services company jumped 2.1 percent in today’s trading session after several brokerages expressed a positive outlook on its Q4FY26 performance.

With a market capitalization of Rs 9,72,026.91 crore, the shares of ICICI Bank Ltd were trading at Rs 1,359.10 per share, increasing around 0.86 percent as compared to the previous closing price of Rs 1,347.50 apiece.

Q4FY26 Highlights

ICICI Bank Ltd reported a steady performance in Q4FY26, with Net Interest Income rising 8% YoY from Rs 21,193 crore to Rs 22,979 crore. Sequentially, it grew 5% from Rs 21,932 crore, reflecting stable core operations. Meanwhile, profit increased 9% YoY to Rs 15,681 crore and surged 16% QoQ, indicating improved efficiency and strong earnings momentum.

Furthermore, on a full-year basis, the bank maintained consistent growth trends. Net Interest Income rose 9% from Rs 81,165 crore in FY25 to Rs 88,075 crore in FY26. In addition, net profit increased 6% from Rs 54,569 crore to Rs 57,936 crore, showing sustained profitability. Overall, the performance highlights balanced growth, supported by stable income expansion and controlled cost structure.

Brokerages Recommendation

Brokerages remain broadly optimistic, with firms like Citi, CLSA, and Morgan Stanley projecting targets between Rs 1,700 and Rs 1,720, implying ~26–27% upside. Similarly, Kotak Institutional Equities stands out with the highest target of Rs 1,800, indicating a strong 33% upside, reflecting high conviction in growth prospects.

Furthermore, other global brokerages like Nomura, Jefferies, and UBS maintain targets in the Rs 1,600–Rs 1,720 range, suggesting 19–27% upside. Meanwhile, Bernstein remains relatively conservative at Rs 1,550, yet still implies 15% upside, reinforcing an overall positive but slightly varied outlook.

ICICI Bank Ltd continues to show strong growth momentum, with Return on Assets at 2.4%, surpassing estimates. Loan growth expectations have been revised upward to 15–16%, supported by stable margins and near-zero credit costs. This reflects efficient operations, strong demand across segments, and sustained improvement in core profitability metrics.

Moreover, asset quality improved sequentially, with Gross NPA improving to 1.4% from 1.53% and Net NPA to 0.33% from 0.37%. Profit Before Tax grew around 10% YoY, aided by recoveries from written-off accounts. These improvements indicate lower credit stress and highlight the bank’s disciplined underwriting and effective risk management practices.

In addition, core income growth remains strong, with Net Interest Income expected to grow 12.3% in FY27 and further to 15.1% in FY28. Sequential loan growth continues to outperform peers, reinforcing business strength. Despite global uncertainties, the bank’s exposure remains stable, with minimal disruption impact on its diversified loan portfolio.

However, valuation stands at around 2.2x FY27 price-to-book, reflecting a premium over peers. While return ratios like RoA at 2.4% and strong RoE justify this, elevated expectations could limit upside. Nonetheless, consistent earnings growth, improving asset quality, and balance sheet resilience continue to support a positive long-term outlook.

ICICI Bank Ltd is one of India’s leading private sector banks, offering a wide range of financial services including retail banking, corporate banking, and digital solutions. Known for its strong asset quality and consistent growth, the bank has built a robust presence across domestic and international markets, supported by technology-driven operations.

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