ICICI Bank shares close lower after Q2 earnings; 3 brokerages remain bullish

ICICI Bank Ltd shares fell on Monday after the private lender reported its September-quarter results, with brokerages highlighting strong loan growth, resilient core income and lower credit costs. Macquarie, Jefferies and Goldman Sachs remained positive on the stock, pointing to the potential for sustained earnings growth and improved returns as the bank deploys its foreign currency non-resident (FCNR-B) deposits.

ICICI Bank reported a 20% year-on-year (YoY) increase in profit after tax (PAT) for Q2FY27, ahead of expectations, according to Macquarie. Net interest income (NII) grew 18% YoY, while advances increased 30% YoY. Loan growth was 24% YoY after excluding FCNR-B-linked loans, while domestic loan growth was led by business banking and corporate lending. The bank's net interest margin (NIM) stood at 4.2%, with credit costs remaining benign and asset quality showing resilience.

ICICI Bank shares closed at ₹1,382, down 1.06% from their previous close of ₹1,396.80. The stock opened at ₹1,408.90 and touched a high of ₹1,412 and a low of ₹1,378.05 during the session. At the day's low, the stock was down 1.34% from its previous close.

Macquarie on ICICI Bank

Macquarie maintained its Outperform rating on ICICI Bank, with a 12-month target price of ₹1,730. The brokerage said the bank's profit rose 20% YoY and exceeded expectations, supported by advances growth of 12% quarter-on-quarter and lower credit costs. Excluding treasury and tax effects, profit increased 23% YoY.

Jefferies maintains Buy rating on ICICI Bank

Jefferies maintained its Buy rating on ICICI Bank and raised its 12-month target price to ₹1,750. The brokerage said September-quarter earnings were ahead of estimates, supported by stronger NII and lower credit costs. It expects the reallocation of FCNR-B funds and repricing of loans following rate changes to support margins.

Goldman Sachs sees 45% upside in ICICI Bank

Goldman Sachs reiterated its Buy rating on ICICI Bank and set a 12-month target price of ₹2,025, implying potential upside of 45% from the ₹1,396.80 previous closing price cited in the report. The brokerage said Q2FY27 results exceeded expectations across loan growth, core revenue, NIM and provisions.