ICICI Bank

ICICI Bank

• ICICI Bank Limited is a leading Indian multinational bank and financial services company.
• Headquartered in Mumbai, with a registered office in Vadodara.
• Recognized by the Reserve Bank of India (RBI) as a Domestic Systemically Important Bank (D-SIB)— indicating it is “too big to fail”, alongside SBI and HDFC Bank.
• Offers a comprehensive range of services to corporate and retail customers, including:
  • Investment banking
  • Insurance (life & non-life)
  • Venture capital
  • Asset management

Domestic Network

• Operates 6,613 branches and 16,120 ATMs across India.
• Presence in 11 countries, with:
  • Subsidiaries in the United Kingdom and Canada
  • Branches in: USA, Singapore, Bahrain, Hong Kong, Qatar, Oman, China, South Africa, and DIFC (Dubai)
  • Representative offices in: UAE, Bangladesh, Malaysia, and Indonesia
  • UK subsidiary branches in Belgium and Germany

Recommendation by Broking Firms (Updated on 22th July 2025)
Issuing Company	Rating	Target Price
Axis Research	Buy	1650
BP Equities	Positive	NA
Motilal Oswal Financial Services	Buy	1670
CLSA	Outperform	1700
J M Financial	Buy	1700
Kotak Institutional Equities	Buy	1700
SMIFS	Buy	1675
Systematix Institutional Equities	Buy	1660
Average Target Price		1679

*Reports are attached at the bottom of page*

1. Asset Quality

• Gross slippages at ₹62.45 bn; slippage ratio at 1.8%, driven by Kisan Credit Card portfolio.
• Net NPA improved to 0.41% (vs 0.43% YoY).
• Provisions at ₹18 bn (↑104% QoQ); Credit cost at 0.5%.
• Provision Coverage Ratio at 75.3%; ₹131 bn in contingency buffer (~1% of advances).
• Quality of new personal loans and credit cards remains strong.

2. Net Interest Margin (NIM)

• NIM at 4.34% in Q1FY26 (↓2–3 bps YoY, like-to-like basis).
• Margins under pressure due to repo cuts; offset by SA rate cuts & CRR benefits.
• Revised NIM computation method reduces volatility.

3. Income & Operating Expenses

• Non-interest income up 22% YoY; fee income up 8% YoY.
• Operating expenses grew 8.2% YoY; tech spend = 10.7% of opex.
• Dividend income surged 49.5% QoQ.

4. Advances & Deposits

• Loan growth at 11.5% YoY; retail loans up 6.9% YoY.
• Business banking grew ~30% YoY; rural lending slightly declined.
• Deposits up 12.8% YoY; CD ratio at 85%.

5. Capital Strength

• Capital Adequacy Ratio (CAR) at 17%; CET-1 at 6.3%.

Reports