ICICI Bank stock falls 1% after Q2 results, among top Nifty losers; brokerages bullish on growth, profitability

The stock has gained 3.2 percent year-to-date, outperforming the Nifty 50, which has declined 11.5 percent over the same period. The bank's market capitalisation stood at approximately Rs 9.9 lakh crore. The decline came amid broader weakness in banking stocks and the equity market. The Bank Nifty index was down 0.4 percent. At 11:28 am, the Sensex was down 331.45 points, or 0.44 percent, at 74,397.82, while the Nifty fell 91.25 points, or 0.39 percent, to 23,054.90.

ICICI Bank reported a 20.1 percent year-on-year rise in standalone net profit to Rs 14,843 crore for the September quarter, beating the CNBC TV18 poll estimate of Rs 14,280 crore. Net interest income (NII) grew 17.7 percent to Rs 25,339 crore, exceeding the estimate of Rs 24,811 crore. However, net interest margin (NIM) narrowed to 4.18 percent from 4.36 percent in the preceding quarter and 4.30 percent a year earlier.

Total advances grew 30 percent year-on-year to Rs 18.32 lakh crore, while deposits increased 27.1 percent to Rs 20.50 lakh crore. Excluding FCNR-B-related balances, loan and deposit growth stood at 24.1 percent and 17 percent, respectively. Goldman Sachs maintained its Buy rating with a target price of Rs 2,025, implying approximately 47 percent upside from Monday's quoted price of Rs 1,381. JPMorgan maintained its Overweight rating and raised its target price to Rs 1,800 from Rs 1,735.

It expects near-term margin pressure from FCNR-B deposits but sees scope for recovery in Q4 and FY28. Nomura maintained its Buy rating and raised its target price to Rs 1,740, while Citi, Jefferies and Bernstein retained positive recommendations with targets of Rs 1,770, Rs 1,750 and Rs 1,800, respectively. Brokerages highlighted strong loan growth, healthy profitability and improving asset quality, although the trajectory of net interest margins remains a key factor to watch.