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ICICI Bank Shares Surge to 2-Month High Amidst Market Dip
6 Jan
Summary
- ICICI Bank shares hit a two-month high of ₹1,410.55 on Tuesday.
- Brokerages maintain a 'BUY' rating with a target price of ₹1,700.
- Moody's expects ICICI Bank's asset quality to remain superior to industry.
ICICI Bank's stock price soared to a two-month high of ₹1,410.55 on Tuesday, marking a significant rally in an otherwise subdued market. This surge pushes the share price to its highest level since October 20, 2025, although it has underperformed the benchmark index over the past six months.
Analysts from Motilal Oswal Financial Services highlight ICICI Bank's meaningful credit growth recovery in Q2FY26, maintaining a 15 per cent CAGR over FY23-25. Net interest margins are expected to stabilize in H2FY26, aided by reduced deposit costs and disciplined pricing. The bank is projected to achieve robust loan growth and leading returns, with an estimated RoA/RoE of 2.3 per cent/16.3 per cent by FY27E.
Moody's Ratings forecasts ICICI Bank's asset quality to remain superior to the industry average, noting its gross NPL ratio of 1.6 per cent in Q2FY26 compared to the industry's 2.3 per cent. This strong performance is supported by supportive economic policies and stable borrower conditions, with a notable slowdown in unsecured retail credit growth.
