ICICI Bank share price target after Q2 results: What are Jefferies, other analysts saying?

Shares of one of India’s leading private lenders ICICI Bank gained over a percent to Rs 1,412 on the BSE on Monday after it reported a net profit of Rs 14,843 crore in the second quarter of financial year 2027, marking 20.1% increase from Rs 12,359 crore posted in the same period last year.The lender's net interest income (NII) increased 17.7% YoY to Rs 25,339 crore, compared with Rs 21,529 crore in Q2FY26, ICICI Bank said in a regulatory filing.

Net interest margin or NIM stood at 4.18% in Q2FY27, compared with 4.36% in Q1FY27 and 4.30% in Q2FY26.ICICI Bank’s gross non-performing asset (NPA) ratio stood at 1.20% as of September 30, 2026, compared with 1.38% in the previous quarter and 1.58% a year earlier. The net NPA ratio declined to 0.30% from 0.35% in the previous quarter and 0.39% as of September 30, 2025.Read More: Sensex | Stock Market Today Live UpdatesICIC Bank Shares: Buy, sell or hold ?Jefferies has maintained its ‘Buy’ rating on ICICI Bank with a target price of Rs 1,750, implying an upside of 25%.

The brokerage expects a normalisation in the asset mix, with funds shifting from bank balances to loans, alongside the benefit of rate hikes, to support margins. Around one-third of the bank’s loans are repriced every month, allowing it to benefit from higher interest rates.Live EventsThe international brokerage has raised its FY27-29 estimates by 5-6% and expects ICICI Bank to deliver a 16% compound annual growth rate in core profits over FY26-29, with return on equity reaching 17% in FY28.

The stock trades at 2 times its FY28 estimated adjusted price-to-book value and 12 times earnings, which the brokerage believes reflects a justified premium over peers. ICICI Bank remains among its top picks.The bank's loans grew 30% YoY, driven by growth of 15% in retail, 34% in small and medium enterprises (SMEs) and 31% in corporate lending. Jefferies expects loan growth to moderate towards 20% by March 2027 as the base normalises.

Deposits rose 27% YoY, with retail deposits growing 14% and current account and savings account (CASA) deposits increasing 12%. Fee income rose 20% YoY, while operating expenses increased 9%. The bank expects a relatively limited impact from cuts in bancassurance fees, given their lower contribution to total income.Nuvama has maintained its ‘Buy’ rating on ICICI Bank with a target price of Rs 1,850, valuing the bank at 2.5 times its September 2028 estimated adjusted book value, compared with 1.7 times at the current market price, and adding Rs 290 per share for subsidiaries and investments.

The brokerage is positive on large-cap private banks, with ICICI Bank among its preferred picks, citing growth ahead of the system, strong return ratios, robust buffers and credible management. It expects return on assets and return on equity of 2.2-2.3% and 17%, respectively, over FY27-29.Gross slippages declined to Rs 4,800 crore, or 1.4% of loans, following seasonal KCC-related stress in the first quarter.

Along with healthy write-offs, this helped bring the gross NPA ratio down further to an all-time low of 1.2%. The specific provision coverage ratio remained healthy at 75%. The bank also did not utilise its contingent provision buffer of Rs 13,100 crore, equivalent to 0.8% of loans, or the standard asset provision of Rs 1,280 crore created towards PSL assets that the bank was directed by the RBI to declassify in the third quarter.

What lies ahead?Bernstein maintained its ‘Outperform’ rating on ICICI Bank with a target price of Rs 1,800. The bank reported loan growth of 30% YoY, or 24% excluding FCNR-linked loans, while deposit growth stood at 27%, easing to 17% excluding FCNR deposits. Net interest income rose 18% YoY, while fee income increased 20%.Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser.

Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

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