ICICI Bank’s standalone net profit rose 20.1% year over year in Q2 FY27, while a narrower net interest margin put deposit mix and loan deployment at the center of broker outlooks.
The bank reported net profit of Rs 14,843 crore (about $1.5 billion), compared with Rs 12,359 crore a year earlier. Net interest income increased 17.7% to Rs 25,339 crore (about $2.6 billion), from Rs 21,529 crore. The board approved unaudited standalone and consolidated results on Oct. 17.
ICICI Bank’s performance review put net interest margin at 4.18%, down from 4.36% in Q1 FY27 and 4.30% a year earlier. Gross nonperforming assets were 1.20% of loans at Sept. 30, compared with 1.38% at June 30 and 1.58% a year earlier.
The same review showed loan growth of 30% year over year, or 24.1% excluding lending by international branches against FCNR (B) deposits. Deposits grew 27.1%, or 17% excluding FCNR (B) deposits. The bank said FCNR (B) inflows added to its term-deposit base; its average current and savings account ratio was 35.8%.
Jefferies kept its Buy rating and Rs 1,750 target, according to Moneycontrol and The Economic Times. Moneycontrol said the target was about 25% above the bank’s Rs 1,397 closing price on Oct. 16. The Economic Times reported that shares were up more than 1% at Rs 1,412 on the BSE at about 12:30 a.m. ET (04:30 UTC) Oct. 19, an intraday quote.
Moneycontrol reported targets of Rs 2,025 from Goldman Sachs, Rs 1,800 from JPMorgan, Rs 1,770 from Citi, Rs 1,740 from Nomura and Rs 1,800 from Bernstein. The Economic Times separately reported that Nuvama maintained a Buy rating and Rs 1,850 target. The reports present individual brokerage targets, not a shared consensus.
The Economic Times reported that Jefferies expects core profit to grow at a 16% compound annual rate over fiscal 2026-29 and return on equity to reach 17% in fiscal 2028. The outlet also reported that Jefferies raised fiscal 2027-29 estimates by 5% to 6% and expects loan growth to moderate toward 20% by March 2027.
Moneycontrol reported that some brokerages saw rising FCNR (B) deposits as a potential source of margin pressure. The Economic Times reported that Jefferies expects moving funds from bank balances into loans and rate increases to support margins.
