ICICI Bank share price jumped as much as 1.5% to ₹1,261.60 apiece on the NSE in Thursday’s trading session and was the top index contributor today. Brokerage firm Motilal Oswal Services reiterated its bullish stance on the leading Indian private lender and projected a potential upside of 41% for ICICI Bank.
The brokerage has maintained a “buy” rating on the country’s second-largest private sector lender and set a target price of ₹1,750 per share.
“We build in FY28E RoA/RoE of 2.3%/16.2%. ICICIBC remains our top BUY within the banking sector, with a TP of INR1,750 (2.5x Sep’27E standalone ABV),” the firm said in a note.
The brokerage firm further added that the ICICI Bank share price has delivered tepid performance over the past year, reflecting broader derating across large banking stocks amid persistent FII selling.
“With operating performance holding strong and sustained market share gains across key lending segments, we expect a gradual rerating,” it said.
Why is MOSL bullish on ICICI Bank?
According to the brokerage, ICICI Bank is well-placed to sustain its growth trajectory while preserving its profitability metrics. It expects the bank to deliver a loan CAGR of 16% between FY26 and FY28, driven primarily by expansion in business banking and personal lending. The corporate banking segment is also likely to witness healthy growth, supported by rising demand for working capital financing.
The firm also believes that ICICI Bank’s liability franchise remains among the strongest in the industry, backed by multiple deposit acquisition channels and a rapidly growing branch network. With a domestic credit-deposit ratio of 85.5% and a liquidity coverage ratio (LCR) of around 126%, the bank is well positioned to capture growth opportunities relative to its peers.
Despite continued investments in technology, customer service, analytics, and talent, ICICI Bank is expected to retain its cost-efficiency advantage. The cost-to-income ratio is projected to remain healthy at approximately 39% in FY27 and 38% in FY28, it said.
The firm also expects the bank’s asset quality to stay resilient, supported by prudent underwriting standards, ongoing portfolio monitoring, and strong recovery trends. The bank maintains a comfortable contingency buffer equivalent to 0.9% of loans and currently faces no incremental stress from the West Asia conflict or the transition to the Expected Credit Loss (ECL) framework. As a result, credit costs are likely to remain under control, with gross and net NPAs forecast to improve to around 1.4% and 0.3%, respectively, by FY28.
ICICI Bank share price trend
The share price trend of ICICI Bank has largely remained negative in the near term. The banking stock has shed over 1% in a week and a month.
Furthermore, the stock has declined over 6% on a year-to-date (YTD) basis and 12% in a year.
Looking at the broader level, ICICI Bank shares have delivered 34% returns in three years and 96% returns in the last five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
