ICICI Bank shares gained more than 1% to ₹1,412 on the BSE on October 19, 2026, after the Indian lender reported a 20.1% increase in quarterly standalone profit. Jefferies, Nuvama and Bernstein retained positive ratings following the results for the quarter ended September 30, although the bank’s lending margin narrowed.
Key Takeaways
- Standalone profit reached ₹14,843 crore as interest income and fees increased.
- Three brokerages retained positive ratings, with price targets ranging from ₹1,750 to ₹1,850.
- Loan growth remained strong after excluding foreign-currency deposit-linked lending, while bad-loan ratios declined.
Table of Contents
- ICICI Bank shares advance despite narrower margins
- Brokerages retain positive ratings
- Foreign-currency inflows lift headline growth
- Bad-loan ratios improve and buffers remain
- Conclusion
ICICI Bank shares advance despite narrower margins
The bank’s September-quarter performance review showed standalone profit rising from ₹12,359 crore a year earlier. Net interest income—the difference between interest earned and interest paid—increased 17.7% to ₹25,339 crore in the second quarter of fiscal 2027.
Net interest margin fell to 4.18%, compared with 4.36% in the preceding quarter and 4.30% a year earlier. Part of the sequential comparison reflected an interest-on-tax-refund benefit of eight basis points in the first quarter; excluding that benefit, the previous quarter’s margin was 4.28%.
Stronger fee income and slower expense growth helped support profitability despite the margin decline. Fee income increased 20.1% to ₹7,795 crore, while operating expenses rose 8.5%. Core operating profit grew 21.8% to ₹20,805 crore.
| Item | Details |
|---|---|
| Jefferies | Buy rating; price target of ₹1,750. |
| Nuvama | Buy rating; price target of ₹1,850. |
| Bernstein | Outperform rating; price target of ₹1,800. |
Brokerages retain positive ratings
Jefferies raised its fiscal 2027–2029 estimates by 5%–6%. It expects a shift in the asset mix from bank balances toward loans, together with loan repricing, to support margins. Its forecast calls for a 16% compound annual growth rate in core profit over fiscal 2026–2029 and a 17% return on equity in fiscal 2028.
Nuvama highlighted growth ahead of the banking system, strong return ratios and provision buffers. It expects return on assets of 2.2%–2.3% and return on equity of 17% over fiscal 2027–2029. Bernstein also retained its positive stance.
These ratings, targets and profitability forecasts are brokerage assessments, not results already achieved or guidance issued by ICICI Bank. The quoted share price was a trading snapshot rather than a confirmed closing price.
Foreign-currency inflows lift headline growth
Total loans increased 30.0% year over year to ₹18,31,580 crore, while period-end deposits grew 27.1% to ₹20,49,874 crore. Both headline rates were boosted by activity linked to foreign currency non-resident bank deposits, known as FCNR(B) deposits.
Excluding loans provided by international branches against those deposits, lending grew 24.1%. Deposit growth excluding FCNR(B) balances was 17.0%. Those adjusted figures provide a clearer view of growth outside the foreign-currency-linked activity.
Retail and rural lending grew 14.8%, business banking expanded 33.8%, and domestic corporate lending increased 30.6%. Jefferies expects overall loan growth to moderate toward 20% by March 2027 as the comparison base normalizes.
Bad-loan ratios improve and buffers remain
The gross non-performing asset ratio declined to 1.20% at September 30 from 1.38% at June 30 and 1.58% a year earlier. The net ratio fell to 0.30%, from 0.35% and 0.39%, respectively.
Gross bad-loan additions were ₹4,833 crore, compared with ₹5,034 crore a year earlier. Provision coverage stood at 75.0%, and the bank continued to hold ₹13,100 crore in contingency provisions.
ICICI Bank also retained an additional ₹1,283 crore standard-asset provision relating to an agricultural priority-sector lending portfolio, pending completion of its review. That buffer remained separate from the improvement in reported bad-loan ratios.
Conclusion
The quarter combined faster earnings growth and lower bad-loan ratios with a narrower lending margin. Subsequent quarterly results will show whether loan growth and fee income continue to offset margin pressure, and whether the brokerages’ expected moderation in lending growth emerges.
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