Global brokerages remain bullish on ICICI Bank following its better-than-expected second-quarter earnings, with JPMorgan and Nomura raising their target prices and several others maintaining Buy or equivalent ratings. Goldman Sachs sees the highest potential upside among the brokerages covered, with its target price of Rs 2,025 implying a gain of nearly 45 percent from Friday's closing price of Rs 1,397.
JPMorgan raised its target price to Rs 1,800 from Rs 1,735, while Nomura increased its target to Rs 1,740. Citi, Jefferies and Bernstein also maintained positive recommendations, citing robust loan growth, healthy profitability and improving asset quality. However, some brokerages cautioned that the sharp increase in foreign currency non-resident (FCNR-B) deposits could weigh on net interest margins (NIMs) in the near term.
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) increased 17.7 percent to Rs 25,339 crore, exceeding the estimate of Rs 24,811 crore.
The bank's NIM stood at 4.18 percent, compared with 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.
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