Synopsis : Motilal Oswal has reiterated its ‘Buy’ rating on ICICI Bank with a target price of Rs.1,750, implying up to 41% upside potential. The brokerage remains optimistic on the bank’s growth outlook, citing strong loan growth, stable margins, healthy asset quality, and continued gains from digital investments.
The ICICI Bank share price is in focus after domestic brokerage Motilal Oswal reiterated its positive stance on the private sector lender. The brokerage has maintained its ‘Buy’ rating and assigned a target price of Rs.1,750 per share, indicating an upside potential of nearly 41% from current levels.
According to the brokerage, ICICI Bank remains one of its preferred picks in the banking sector due to its balanced growth profile, strong asset quality, robust deposit franchise, and improving operating efficiency.
- Broad-based loan growth supporting momentum
Motilal Oswal believes ICICI Bank’s credit growth is becoming increasingly diversified across segments.
While business banking continues to remain a key contributor, the brokerage expects stronger traction from personal loans, corporate lending, and small business financing over the coming years.
The bank reported healthy loan growth during the March quarter, while corporate credit demand has also started showing signs of improvement amid rising working capital requirements across industries.
- Strong deposit franchise remains an advantage
Deposits have become a key competitive differentiator in the banking sector, and Motilal Oswal believes ICICI Bank is better positioned than many of its peers.
The bank continues to attract customers through salary accounts, transaction banking relationships, digital channels, and its expanding branch network.
The brokerage also highlighted that ICICI Bank maintains a comfortable liquidity position, supported by a liquidity coverage ratio of around 126% and a well-managed credit-deposit ratio, providing adequate flexibility to fund future growth.
- Margins expected to remain resilient
The brokerage noted that net interest margins (NIMs) appear to have stabilized after facing pressure from recent interest rate cuts.
Motilal Oswal expects ICICI Bank’s strong pricing power and favorable loan mix to help protect profitability going forward.
Growth in higher-yielding segments such as personal loans, combined with disciplined underwriting standards, is expected to support margin stability over the medium term.
- Digital investments driving efficiency gains
Another key factor behind the brokerage’s bullish outlook is the bank’s continued focus on technology and digital transformation.
Over the last few years, ICICI Bank has increased investments in analytics, customer service infrastructure, and digital capabilities.
Motilal Oswal believes higher digital adoption, productivity improvements, and growing business volumes could further enhance operational efficiency and strengthen operating leverage.
- Asset quality remains a major strength
Asset quality continues to be one of ICICI Bank’s strongest positives, according to the brokerage.
The bank has maintained prudent underwriting standards while benefiting from healthy recovery and collection mechanisms.
Motilal Oswal expects both gross and net non-performing asset ratios to improve further over the next few years, while credit costs are likely to remain under control, supporting earnings growth.
- What investors should watch
According to Motilal Oswal, ICICI Bank remains well-positioned to deliver consistent growth across key operating metrics including loans, deposits, margins, and asset quality.
The brokerage expects the lender to report profit growth of around 15% annually between FY26 and FY28, driven by improving operating leverage, market share gains, and continued execution across business segments.
- Key factors supporting Motilal Oswal's bullish view
- Broad-based loan growth across retail, business banking, and corporate segments
- Strong and diversified deposit franchise
- Comfortable liquidity position and funding profile
- Stable net interest margin outlook
- Continued gains from digital investments and operating leverage
- Strong asset quality and controlled credit costs
- Expected profit growth of around 15% annually over FY26-FY28
Disclaimer : This article is for informational purposes only and should not be considered investment advice. Brokerage ratings and target prices are subject to change based on market conditions. Investors should consult a SEBI-registered financial advisor before making any investment decisions.
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