Brokerage firms have expressed strong optimism regarding ICICI Bank’s Q4 results for FY25, praising the lender’s impressive earnings growth, robust profit margins, and enhanced asset quality amidst challenging economic conditions. This positive sentiment is echoed by leading brokerages, including Motilal Oswal, Nomura, Nuvama, and Jefferies, each providing insights into the bank’s promising performance following its recent quarterly report.

CLSA: Target Price Increase with Positive Outlook

CLSA has raised its target price for ICICI Bank, now estimating it between ₹1,600 and ₹1,700 per share, while retaining an "Accumulate" rating. The brokerage highlighted the bank’s consistent growth trajectory and solid financial fundamentals, signaling confidence in its future performance.

Jefferies: A Top Contender

Jefferies has also maintained a "Buy" recommendation for ICICI Bank, lifting its target price to ₹1,710, up from ₹1,575. The firm emphasized the bank’s sustained return on assets (RoA) exceeding 2%, alongside commendable asset quality and capital adequacy. Jefferies views ICICI Bank as a top pick in the sector, reflecting its strong operational metrics.

Nuvama: Strong Earnings Drive Buy Rating

Nuvama reiterated its "Buy" rating, citing ICICI Bank’s impressive pre-provision operating profit (PPOP) and earnings delivery. The brokerage adjusted its target price to ₹1,630, up from ₹1,470, highlighting the bank’s strong performance in a competitive landscape.

Key Performance Highlights

• Net Interest Margin (NIM) increased by 15 basis points quarter-on-quarter, surpassing expectations.
• Loan growth was recorded at 13% year-on-year, while deposits rose by 14% YoY.
• The credit cost improved significantly, dropping from 38 basis points to 27 basis points QoQ.
• Profit After Tax (PAT) surged by 18% YoY and 7% QoQ, totaling ₹12,600 crore.
• The bank’s slippage ratio improved from 1.9% to 1.6%, indicating better asset management.

Nomura: Leading the Pack

Nomura also maintained a "Buy" rating, raising its target price from ₹1,575 to ₹1,690. The brokerage praised ICICI Bank’s sector-leading metrics in RoA and asset quality. They noted that despite expected slight declines in NIM due to potential repo rate cuts, ICICI Bank is projected to maintain a robust RoA of 2.2% to 2.3% through FY26–28.

Motilal Oswal: Preferred Sector Pick

Motilal Oswal has reaffirmed its bullish stance on ICICI Bank, now targeting a price of ₹1,650. The firm attributes this upgrade to the bank’s impressive net interest margin expansion and strong fee income. They anticipate an RoA of 2.3% and RoE of 17.5% for FY27, reinforcing the bank’s position as a “preferred Buy” in the sector.

ICICI Bank’s Stock Performance

Following the positive quarterly results, ICICI Bank’s share price saw an uptick of over 1.5%, trading at approximately ₹1,427 during early market hours on Monday. This reflects growing investor confidence in the bank’s financial health and future prospects.

Conclusion

In summary, ICICI Bank’s strong performance in Q4 FY25 has garnered a favorable response from several top brokerage firms. With robust growth metrics and improving asset quality, ICICI Bank is positioned as a leading player in the banking sector. As analysts continue to express bullish sentiments, investors are keenly watching for further developments in the bank’s trajectory.