ICICI Bank shares reached new highs as the stock continued to rally. See more upside?

“ICICI Bank delivered a strong outperformance among large banks and highest growth in NII, even on a higher basis. ICICI maintains its position as the best-in-class performer for the eighth quarter, outperforming on every metric from core PPOP to treasury and buffer provisions. We repeat ‘BUY/SO’ and the top pick. We are confident that the Bank can continue to work on credit growth and NIM expansion on a higher basis as well. Best-in-class earnings for eight consecutive quarters and NIM expansion is likely to continue.” ICICI Bank shares with a target price of 1,115

“ICICI Bank reported strong 2QFY23 performance on the back of strong credit growth, multi-quarter higher margins and lower credit costs. Credit growth came in at 22.7% YoY, largely led by all segments. OPEX growth came higher as the bank continued to invest in technology. Gross crime declined sharply, leading to an improvement in asset quality,” Nirmal Bang said.

The brokerage house remains positive on ICICI Bank considering its growth outlook and earnings trajectory and has maintained Buy on Bank stock with Target Price (TP). 1,144 per share.

“NIM expanded 30 bps QoQ, in line with industry trends, as assets revalue faster than liabilities and the credit mix shifts towards higher-yield loans. The improvement in asset quality continues with negligible net slippage and reduction in restructured loans. However, with system level liquidity crunch of ROA/ROE in the current quarter, credit growth is unlikely to slow down and compress NIM in 2HFY23/FY24,” said another brokerage Ambit with revised target price of Rs 1,025 and ICICI Said with a buy rating on the bank.

Shares of ICICI Bank outperformed with gains of over 24% in the last six months as compared to a rise of nearly 6% in the benchmark BSE Sensex During this period.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.