ICICI Bank share at Rs 1,750? Key overhang removed, stock a top banking buy, says MOFSL

Motilal Oswal Financial Services (MOFSL) on Thursday said ICICI Bank Ltd was its top pick in the banking sector, saying the board’s recommendation to extend Sandeep Bakhshi’s tenure as Magaging Director and chief executive officer by two years had removed a key overhang and reinforced leadership stability.

MOFSL said ICICI Bank shares had delivered a modest 6 per cent return in FY26 so far, compared with an average 21 per cent return over FY23, FY24 and FY25. This, the brokerage said, had resulted in the stock trading at cheaper valuations compared with its average trading valuations over the past three years.

Under Bakhshi’s leadership, MOFSL said the private lender had undergone a radical transformation, shifting its emphasis from individual performance to team performance. This strategic shift had enabled the bank to consistently deliver stronger outcomes and move away from a culture that previously incentivised individual stardom, it said.

“The bank’s strong focus on core PPoP growth while fostering a cohesive organisational culture underpins its position as a resilient and successful institution,” MOFSL said.

MOFSL said ICICI Bank had entered a phase where its operating variables exhibited far less volatility and that the bank appeared well poised to sustain this leadership over the coming years.

“The bank remains firmly on track to deliver RoA of 2.2 per cent in FY26E, despite one-off provisions in Q3, and RoE of 16 per cent over FY26-27. The bank’s approach is measured and deliberate, avoiding aggressive expansion while capturing market share in segments where risk-adjusted returns are favorable,” MOFSL said.

With the extension of Bakhshi’s term, the brokerage said the bank was well positioned to continue delivering best-in-class growth and profitability and remained one of the most dependable large-bank stories in the sector.

"NIMs have been largely stable in recent quarters, aided by a reduction in the cost of deposits, a steady loan mix, and disciplined pricing across retail and corporate books. Management expects NIMs to remain broadly flat, as the CRR cut and residual TD repricing largely offset the full transmission of the repo rate cut," it said.