Why Are Global Brokerages Maintaining a Positive Outlook on ICICI Bank?
ICICI Bank continues to remain a top pick among foreign brokerages after its Q2FY26 results showcased steady performance, strong asset quality, and resilient profitability. Jefferies maintained a Buy rating with a target price of ₹1,760, highlighting softer growth but stable margins and continued leadership in digital and retail lending.
Jefferies believes that ICICI Bank’s core fundamentals remain robust, underpinned by better Net Interest Margins (NIMs), high-quality assets, and steady operating leverage. The brokerage emphasized that clarity on the next CEO’s term would provide comfort to long-term investors, while consistent performance across core segments reinforces confidence in management’s strategy.
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HSBC echoed a similar positive stance, maintaining a Buy rating with a target price of ₹1,680. The brokerage noted that ICICI’s operating performance outperformed expectations, aided by stronger-than-estimated NIMs, better fee income, and lower credit costs. HSBC expects premium valuations to sustain due to consistent return ratios and prudent balance sheet management.
Meanwhile, CLSA retained an Outperform rating with a target price of ₹1,700, citing a 4% PPOP and 10% PAT beat versus estimates. However, it flagged that overall loan growth continues to moderate and remains driven mainly by business banking. CLSA also noted that while NIMs improved by 3 bps QoQ, management is not guiding for further improvement in the second half, suggesting stability rather than expansion in margin trajectory.
All three brokerages emphasized ICICI Bank’s strong asset quality as a key differentiator versus peers. Non-performing asset (NPA) levels continue to decline, while credit cost guidance remains benign. The bank’s well-diversified loan mix, digital banking momentum, and prudent capital management have positioned it as a steady compounder in the sector.
| Brokerage | Rating | Target Price (₹) |
|---|---|---|
| Jefferies | Buy | 1,760 |
| HSBC | Buy | 1,680 |
| CLSA | Outperform | 1,700 |
Brokerages agree that while ICICI Bank’s Q2FY26 wasn’t a “blowout” quarter, it reinforced the stability theme investors seek in large private lenders. Loan growth moderation is being offset by disciplined cost control and robust fee generation. Digital penetration continues to scale up, contributing to higher operational efficiency and customer retention.
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With asset quality remaining strong and NIMs steady, ICICI Bank continues to be one of the most stable performers among private lenders. Brokerages believe that as the credit cycle matures, ICICI’s profitability and valuation premium are likely to sustain through FY26–FY27.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that ICICI Bank remains a cornerstone for investors seeking stability and long-term compounding. Its superior NIM management, strong asset quality, and consistent profitability make it a reliable large-cap holding within the financial space.
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Related Queries on ICICI Bank
- Why Did Brokerages Maintain a Buy Rating on ICICI Bank?
- What Are the Key Drivers of ICICI Bank’s NIM Stability?
- How Does ICICI Bank Compare to Other Private Lenders in FY26?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
