ICICI Bank Share Price Target 2025: Buy, Sell Or Hold - Brokerage Gives Technical, Fundamental View

ICICI Bank , India’s second-largest private bank with a leadership position across financial services, has been recommended as a 'BUY' by Mirae Asset Sharekhan.

The brokerage firm has revised its price target to Rs 1,550, with the current market price (CMP) at Rs 1,286.

“We reiterate our BUY rating with a revised PT of Rs 1,550. The bank is relatively well-positioned in the current cycle as it continues to outperform peers on most parameters, exhibiting strong franchise strength despite sectoral headwinds,” the brokerage noted in its report.

Steady Loan Growth and Strong Fundamentals
ICICI Bank’s steady loan growth trajectory and stable asset quality are key drivers behind the bullish recommendation.

According to Mirae Asset Sharekhan, the bank is expected to deliver 15-16% loan growth in FY2025, driven by its focus on business banking, mid-corporates, and other secured retail loans. The bank has revamped its strategy for unsecured retail loans, tightening credit filters and rationalizing payouts to mitigate risks.

The bank’s asset-quality outlook remains stable, supported by higher contingent provisions and minimal signs of alarming stress. Despite increased delinquencies in the unsecured retail segment, the brokerage expects the situation to stabilize in the coming quarters.

Margins to Stay Stable Until Rate Cut Cycle Begins
The report highlights that Net Interest Margins (NIMs) are expected to remain broadly stable in H2FY2025. However, the lower interest rate cycle, when it begins, could impact margins as 51% of the bank’s loan book is linked to repo rates. On the positive side, operational expenditure growth is likely to lag income growth, offsetting the impact of lower NIMs.

Gradual Normalization of Credit Costs
Credit costs are anticipated to normalize gradually unless there is a major economic downturn.

Mirae Asset Sharekhan points out that ICICI Bank’s non-NPA provisions of ~1.0% of loans outside the Provision Coverage Ratio (PCR) provide a cushion against potential risks. The portfolio risk remains within internal limits, ensuring credit costs stay below long-term averages.

Valuation and Long-Term Outlook
At current valuations, ICICI Bank trades at 2.6x/2.2x/1.9x its FY2025E/FY2026E/FY2027E core book value estimates. The brokerage believes the bank is well-positioned to sustain its Return on Assets (RoA) above 2% in the near to medium term.

“ICICI Bank currently trades at 2.6x/2.2x/1.9x its FY2025E/FY2026E/FY2027E core BV estimates. Overall, we see ICICI Bank relatively well-positioned in the sector in terms of asset quality/growth and profitability. The bank continues to outperform peers on most of the parameters exhibiting strong franchise strength; and thus, the current valuation premium to peers is likely to sustain. We believe the bank is likely to sustain RoA over ~2% in the near to medium term. The bank has been delivering predictable earnings with healthy growth on a sustained basis, which is a key positive.,” the report added.


Disclaimer

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds