ICICI Bank up 3%; hits highest level in CY 2025, stock nears record high

Since January 21, 2025, post Q3FY25 results, ICICI Bank has outperformed the market by gaining 9%, against 1.2% rise on the BSE Sensex, after it reported a strong quarterly performance

ICICI Bank share price: Shares of ICICI Bank surged 3 per cent to Rs 1,303 on the BSE in Tuesday’s intra-day trade on expectations of steady earnings. The stock price of the private sector lender hit its highest level in calendar year 2025. It had hit a record high of Rs 1,361.35 on September 20, 2024.

 

ICICI Bank, in an exchange filing, said that BofA Financials Trip held in-person on March 17, 2025 in Mumbai. However, no presentation was made and no unpublished price sensitive information was shared in the meeting, the bank said.

 

Since January 21, 2025, post October-December quarter (Q3FY25) results, ICICI Bank has outperformed the market by gaining 9 per cent after it reported a strong quarterly performance supported by healthy loan growth, robust asset quality, and improved profitability. In comparison, the BSE Sensex was up 1.2 per cent during the same period.

 

 

ICICI Bank has strengthened its position in the competitive Indian banking landscape, driven by consistent growth in its loan and best-in-class asset quality. The bank delivered a healthy performance in Q3FY25, driven by healthy loan growth, stable margins, and controlled operating expenses. Despite industry-wide credit pressures, the bank maintained superior asset quality, with GNPA/NNPA at 1.9 per cent/ 0.42 per cent, supported by prudent underwriting and provisioning practices.

 

The focus on enhancing operating leverage, coupled with strong deposit inflows and a favorable credit-deposit ratio, reinforces its long-term growth potential. Additionally, the bank's diversified loan book and emphasis on high-yield segments provide a strong platform for sustained profitability, analyst at KRChoksey Shares and Securities said in Q3FY25 result update. Given the bank's strong fundamentals, resilient growth trajectory, and attractive valuation, the brokerage firm reiterated 'Buy' rating on the shares of ICICI Bank.

 

Despite the challenging macroeconomic conditions, ICICI bank is expected to maintain the credit growth momentum with an extensive and diversified distribution, a broad customer base and digital initiatives. This, coupled with a strong capital base, stable asset quality and granular deposits, positions the bank well to capture long-term growth opportunities, analysts at LKP Securities said.

 

ICICI Bank’s enhanced operating leverage is emerging as a key driver for earnings growth. Moreover, ICICI bank, with its robust deposit inflows and a favorable credit-deposit (CD) ratio (the lowest among large private banks), is well-positioned for profitable growth. Its asset quality outlook remains steady, supported by robust underwriting standards and prudent provisioning policies, the brokerage firm said.

 

While factors may be strenuous for banking, ICICI Bank may hold the tide with steady earnings and FY27E ROA of >2 per cent and ROE of 15 per cent. With transition for HDFC Bank, ICICI Bank is a clean play on best-in-class ROA. It should trade at a premium on high quality earnings, according to analysts at Elara Capital.

 

With strong underlying and levers to continue delivering better risk-adjusted returns, even on a high base, we see the risk of an earnings disappointment rather low. The brokerage firm believes ICICI Bank has all it takes to be an industry benchmark this cycle and thus sustaining/bettering valuation premium.