ICICI Bank Gets 'Buy' Rating from Motilal Oswal with 17% Growth Potential

Motilal Oswal Securities Ltd (MOSL) has recommended a 'Buy' for ICICI Bank, targeting a share price of ₹1,350. The positive outlook from Motilal Oswal is attributed to the bank's strong loan and fee growth, solid asset quality, and other key factors. 

June 21 represented the fourth straight session of gains for ICICI Bank. The stock remained stable, closing at ₹1,157.50 in the prior session. Over the past six months, the stock has risen by 16%, surpassing the Nifty 50, which saw an increase of nearly 10% in the same timeframe.

Motilal Oswal stated that ICICI Bank's loan growth is anticipated to remain strong. The bank is expected to focus on quality underwriting and maintain strong liability momentum. Additionally, ICICI Bank is committed to utilizing superior technology to enhance customer acquisition, according to Motilal Oswal.

The brokerage anticipates that ICICI Bank's Net Interest Margins (NIMs) will remain within a stable range in the near future.

Motilal Oswal noted that ICICI Bank's fee income growth has been consistent. Additionally, operating leverage is becoming a crucial factor for the bank, with an emphasis on 'Return on Effort.' The bank maintains strong asset quality, and credit costs are anticipated to normalize gradually.

On April 27, ICICI Bank announced a net profit of ₹10,707 crore for Q4 FY24, marking a 17% rise from ₹9,122 crore in the same quarter the previous year.

Last week, during the holiday-shortened period, the combined market capitalization of three of the top ten most valued firms increased by ₹1,06,125.98 crore. Among them, ICICI Bank was a significant gainer, adding ₹36,118.99 crore to its valuation, which reached ₹8,13,914.89 crore.

ICICI Bank Ltd (ICICI Bank) offers a comprehensive range of services including personal and corporate banking, investment banking, private banking, venture capital, life and non-life insurance, securities broking, and asset management. These services cater to corporate and retail clients, high-net-worth individuals, and small and medium-sized enterprises (SMEs).