Anand Rathi has maintained a positive view on ICICI Bank with a target price of ₹1,746. The brokerage highlighted the bank's strong 19.9% year-on-year credit growth and resilient asset quality in the first quarter of FY27, even as other banks faced margin pressure.
Brokerage firm Anand Rathi has issued a research note maintaining a positive outlook on ICICI Bank, setting a target price of ₹1,746 per share. This target is based on a valuation of the bank's core operations alongside the value contributed by its various subsidiaries. The update follows the bank's recent performance in the first quarter of the 2027 financial year, where it showed growth metrics that outperformed several industry peers.
A key highlight of the report is the acceleration in credit growth, which reached 19.9% year-on-year for the quarter ending June 2026. This is a noticeable increase from the 15.8% growth reported in the previous quarter. Unlike many other large private sector banks that have seen their net interest margins—the difference between interest earned on loans and interest paid on deposits—shrink recently, ICICI Bank managed to expand its margins sequentially during the same period.
Asset Quality and Efficiency Metrics
The bank also reported strong asset quality numbers. In the first quarter of FY27, which is traditionally a challenging period for loan portfolios, ICICI Bank recorded a credit cost of 32 basis points. This figure is noted as being among the lowest in the private banking sector. Furthermore, the bank delivered a Return on Equity of 17%, a measure of how effectively the company uses shareholder money to generate profit. The brokerage expects this return metric to remain above 15% through the 2028 financial year.
The report contrasts ICICI Bank’s liquidity position favorably against HDFC Bank, suggesting that the bank is well-positioned to maintain its growth trajectory. The expectation is that stable margins, combined with a steady flow of fee income and improved operational efficiency, will support the bank's performance in the coming years.
For investors, the key monitorables will be the sustainability of these margins and credit growth rates in a competitive banking sector. Changes in interest rates, which affect borrowing demand, and any potential shifts in the broader economic environment that could impact loan repayments, remain important factors to track. Investors may also look for upcoming quarterly disclosures to see if the bank can maintain its low credit costs and hold its advantage in net interest margins compared to the rest of the industry.