ICICI Bank target 2026: Rs 1,709 amid faster loans

Why ICICI Bank is back in focus

ICICI Bank remains one of the most consistently “Buy”-rated large-cap banking stocks in India, with multiple brokerages reiterating positive calls through early 2026. The latest set of notes highlight a pickup in loan growth after several quarters of more subdued expansion, alongside stable margins and improving asset quality.

Even with these supportive operating indicators, the stock was quoted at about Rs 1,240 in April 2026, around 11% below its 52-week high of Rs 1,388, according to the provided data. Commentary in the notes links this gap to broader banking sector caution, including foreign investor outflows and pressure on net interest margins.

Against this backdrop, broker targets and consensus ranges have become a key reference point for investors tracking valuation support and near-term expectations.

Loan growth accelerates after five slower quarters

One brokerage note said ICICI Bank’s loan growth accelerated to 15.8% year-on-year after staying in a 10.3%-13.9% year-on-year band over the last five quarters. The same note attributed the acceleration to business banking and rural loans, along with a pickup in mortgages.

Separately, Anand Rathi noted that credit growth accelerated to 11.5% year-on-year, compared with 10.3% year-on-year in Q2FY26. Since these figures come from different notes, they should be read as separate snapshots of reported trends rather than a single point estimate.

Across both accounts, the shared takeaway is that credit growth momentum improved versus the immediately preceding period. Management commentary cited by Anand Rathi also pointed to guidance for further acceleration in credit growth going forward.

Net interest margin: stable sequentially, supported by funding costs

The same note that flagged 15.8% loan growth said NIM was sequentially stable. It added that improvement in cost of funds was better than the decline in yields, helping hold margins.

This framing matters because the broader discussion in the text repeatedly references sector-wide NIM pressure. A stable sequential NIM, even if not expanding, is positioned in the notes as a supportive factor when combined with faster loan growth.

While the text also references “4.5%+ NIM” as part of “best-in-class” fundamentals, no period or reported line item is provided alongside it. As a result, it is best read as a qualitative benchmark stated in the commentary.

Asset quality improves; net slippages at 0.32%

One note said asset quality improved both quarter-on-quarter and year-on-year, with net slippages of 0.32%. Anand Rathi separately described asset quality as stable, while also noting the quarter is seasonally weak.

The text also cites “sub-2% GNPA” as part of the broader investment case presented by analysts. However, it does not specify the exact GNPA figure or the reporting period in the provided material.

Taken together, the notes indicate that asset quality trends are not presenting a fresh negative surprise in these updates. That is important for bank valuations, where credit cost expectations can significantly influence target multiples.

Profitability: RoE stays above 15%

The provided commentary said RoE has been sustained above 15%. Anand Rathi similarly expected RoE to remain above 15%, citing a combination of retail-led growth pickup and stable asset quality.

The text elsewhere references “17%+ ROE” while describing ICICI Bank as having “best-in-class” fundamentals. Since the document does not attach a period or reported result to that figure, it functions as part of the broader analyst narrative rather than a single disclosed quarterly metric.

Why some brokerages prefer ICICI Bank over HDFC Bank

Both sets of commentary explicitly state a preference for ICICI Bank over HDFC Bank. The first note argues the growth and margin delta over HDFC Bank could continue due to a better liquidity position, citing higher LCR and “cash and investments.”

Anand Rathi echoed the preference, saying ICICI Bank is relatively better placed to deal with the growth-margin trade-off and maintain an RoE differential over HDFC Bank.

These points are presented as relative positioning rather than a forecast, and they place liquidity and balance sheet flexibility at the center of the comparison.

Broker ratings, valuation method, and target prices

The notes include multiple “Buy” reiterations and target prices based on FY28 estimated valuation multiples. One note maintained a BUY rating with a target price of Rs 1,716, valuing the core bank at 2.5x FY28e P/ABV and assigning Rs 242 per share to subsidiaries.

Anand Rathi maintained a BUY rating with a target price of Rs 1,713, using a similar structure: 2.5x FY28e P/ABV for the core bank and Rs 240 per share for subsidiaries. The Anand Rathi write-up also referenced core PPoP growth of 6.9% year-on-year (and 3.4% quarter-on-quarter), excluding one-offs.

Where analyst consensus targets stand in 2026

The document cites a 12-month analyst consensus target range of Rs 1,450 to Rs 1,650, which it says implies 17%-33% upside from Rs 1,240. It also lists select targets: Goldman Sachs at Rs 1,650, Jefferies at Rs 1,600, and UBS at Rs 1,500.

A separate “analysis” dated March 23, 2026, states a consensus ‘Strong Buy’ rating from 40 analysts with a target price of Rs 1,709, implying potential upside of 37% from current levels.

The same document also outlines a longer-term target range of Rs 1,800 to Rs 2,200 for 2027-2028, conditioned on assumptions including 18%-19% RoE, 15% loan growth CAGR, and potential subsidiary value unlocking via listings.

Key numbers at a glance

Target prices and broker checkpoints mentioned

What investors typically track from here

The immediate operational markers in the notes are credit growth, margin stability, and asset quality prints such as slippages. The comparative framing versus HDFC Bank also makes liquidity indicators, including LCR, part of the discussion, though no specific LCR number is provided in the text.

The Anand Rathi note also mentions the board re-appointing Mr Bakhshi as CEO till Oct-28, which it described as a positive development. Leadership continuity is often watched closely in large banks, particularly when credit cycles and funding conditions are shifting.

Conclusion

The broker commentary provided points to an improved growth trajectory for ICICI Bank, stable sequential NIM, and supportive asset quality trends, alongside RoE sustained above 15%. Multiple notes reiterate Buy ratings with FY28-based valuation frameworks, while consensus targets cluster above the April 2026 reference price of Rs 1,240.

The next key signposts, based on the same material, are whether the guided acceleration in credit growth plays out and whether margins remain stable as funding costs and yields evolve.