ICICI Bank Ltd. (Market cap: $76.7 Billion; Current market price: Rs 915; Target price: Rs 1,298; Upside potential: 42%; Rating: Buy)
A large asset base of Rs 17.2 trillion and a network of 6248 branches has helped generate not only asset growth for ICICI Bank, but also aided it in building a fee income profile. In the past few years, the bank has focused on granulising its asset and liability profile, the benefits of which are visible in its financials now, with its return on asset reaching a historic high of 2.4% in H1 FY24 (from a low of 0.4% in FY19).
The share of retail advances stands higher at 54.3% and share of low cost current account and savings account is also at healthy level of 40.8%. Of the total retail portfolio, nearly half is towards housing loans, which are secured in nature.
The bank’s Q2 FY24 credit growth stood at 18.3% YoY driven by healthy double-digit growth across all domestic loan segments.
We have a ‘Buy’ rating on ICICI Bank with a target price of Rs 1298 (valued at 2.75 times September 2025E adjusted book value plus subsidiary value per share of Rs 180).