Prabhudas Lilladher issued a buy rating for ICICI Bank with a target price of Rs 1900. The bank saw a strong quarter with loan growth at 7.3 percent. Experts said, "ICICIBC garnered sizable FCNR money, gaining a strategic advantage." Analysts raised the profit estimates for the bank by 5 percent.
Prabhudas Lilladher's research report on ICICI Bank ICICIBC saw a stellar quarter with 3.7% beat on core PPoP (HDFCB:in-line, AXSB:miss) due to better NII/fees as loan growth (ex-FCNR) was strong at 7.3% QoQ (AXSB-5.3%, HDFCB-3.4%). Post 10bps QoQ decline in NIM to 4.28%, it may further fall in Q3FY27 due to full FCNR impact. NIM may improve from Q4FY27 led by repo hike and liquidity utilization. Despite being NIM dilutive, ICICIBC garnered sizable FCNR money, gaining a strategic advantage, as substantial fixed-rate funding was mobilized to support future growth amid a rate hike cycle. Due to better loan growth, we raise core PAT for FY27/28E by avg. 5%. Outlook We tweak multiple to 2.6 from 2.7x but raise TP to INR 1,900 from INR1,850 as we roll forward to Sep'28 core ABV. Reiterate 'BUY'. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. ICICI Bank - 1910026 - prabhu