ICICI Bank Q3 Results Review: Motilal Oswal Reiterates ‘Buy’ On The Stock, Revises Target Price — Here’s Why Motilal Oswal Financial Services NDTV Profit

ICICI Bank delivered another steady quarter in a highly uncertain environment as credit costs stood at just 37bp, the Q3 slippage rate came in lower than Q1, and the reported RoA was 2.36% (2.37% for 9M FY25).

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Motilal Oswal Report

ICICI Bank Ltd. once again reported a healthy performance even in the current challenging environment characterized by controlled provisions, impressive cost control, healthy other income, and stable asset quality (ex-agri). Net interest income growth was in line, while net interest margin contracted 2 bp QoQ. The bank’s substantial investment in technology offers some cushion while continued productivity gains have helped maintain a tight leash on cost ratios.

A steady mix of high-yielding portfolio and broad-based growth across product lines are enabling profitable growth while maintaining healthy business diversification.

Secured asset quality remained stable (ex-agri) with no signs of stress, leading to improvement in the GNPA ratio. The contingency provisioning buffer of Rs 131 billion (1.0% of loans) provides further comfort in case of any future cyclical stress.

We tweak our earnings estimates and project RoA/RoE of 2.2%/16.8% in FY27. Reiterate Buy with a revised target price of Rs 1,550 (based on 2.5x FY27E adjusted book value).

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. Read more on Research Reports by NDTV Profit.The bank delivered 11% growth in advances during 9MFY25 and remains on track to beat peers and the industry, says the brokerage.  Read MoreResearch Reports 

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