What is the story about?
ICICI Bank's share price fell 3.2 per cent on Monday after the bank reported its third-quarter results over the weekend. India’s second-largest private
sector lender reported a 4.02 per cent year-on-year decline in standalone profit for the December quarter, with net profit slipping to Rs 11,317.86 crore from Rs 11,792.42 crore a year earlier. The third quarter results were followed by bullish commentary by brokerages, with Motilal Oswal hiking the bank's target price to Rs 1,750 from earlier Rs 1,700. Similarly, Citi maintained its 'Buy' rating for the stock with a target price of 1,720
Stock Performance
The company's share price fell 3.2 per cent to hit an intraday low of Rs 1,364.30 apiece, and it pared losses to trade 2.96 per cent lower as of 09:38 AMICICI Bank carries a total market capitalisation of nearly Rs 9.79 lakh crore, while its one‑year price range spans from a low of Rs 1,269 to a high of Rs 1,551
The stock's Relative Strength Index was 30. Notably, an RSI above 70 indicates that the stock is overbought, and below 30 indicates the stock is oversold. Meanwhile, 30 to 70 indicates a neutral zone, with 50 often indicating no strong trend.
ICICI Bank Q3 Result
The bank's net interest income increased 7.7 per cent year-on-year to Rs 21,932 crore in Q3 FY26, compared with Rs 20,371 crore in the same quarter last year. Meanwhile, the net interest margin stood at 4.30 per cent in Q3 FY26, marginally higher than 4.25 per cent a year earlier and unchanged from the preceding quarter.Gross non-performing assets stood at Rs 23,758 crore, while net NPAs were Rs 5,732 crore during the quarter. The gross NPA ratio improved to 1.53 per cent from 1.96 per cent a year earlier, while the net NPA ratio declined to 0.37 per cent from 0.42 per cent. Provisions excluding tax more than doubled to Rs 2,556 crore in Q3 FY26 from Rs 1,227 crore in Q3 FY25, driven by a specific standard asset provision of Rs 1,283 crore.
The bank's board also approved the reappointment of current chief executive Sandeep Bakshi for a further two years starting October 2026.
Brokerages on ICICI Bank
MOSL on ICICI BANK
- Maintain Buy and hike the target price to Rs 1,750 from Rs 1,700
- Reported a steady quarter, marked by healthy loan growth, robust asset quality, and only marginal impact from the new labor code
- With the term extension of Mr. Sandeep Bakhshi, the bank is well-positioned to continue delivering best-in-class growth and profitability.
- Asset quality remains robust, with a contingency buffer maintained atRs 131 bn despite one-off provisions in 3Q
- Earnings have been fine-tuned, with FY27E ROA and RoE estimated at 2.3 per cent and 16.1 per cent, respectively.
CITI on ICICI BANK
- Rated 'Buy' with a target price of Rs 1,720
- Q3FY26 saw a core PPoP miss due to one-off agri-PSL provisioning, treasury losses and higher opex
- Credit cost spike was regulatory in nature, with no deterioration in asset quality; core credit cost remained contained at 36 bps
- Loan growth accelerated QoQ, led by corporate and business banking, while retail growth stayed soft
- 39. NIMs were broadly flat and are guided to remain range-bound
- CEO reappointment removes a key overhang; earnings CAGR of over 15 per cent during FY26-28E supports the 'Buy' call
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
