ICICI Bank shares rise 3% after Q1 results. Why Bernstein and 4 other brokerages see up to 32% upside

Published 20 July 2026 · finance

Shares of ICICI Bank gained 3% to Rs 1,480 on the BSE on Monday after the private sector lender reported strong June-quarter earnings, with double-digit

Shares of ICICI Bank gained 3% to Rs 1,480 on the BSE on Monday after the private sector lender reported strong June-quarter earnings, with double-digit growth in profit and net interest income, supported by healthy loan growth and improved asset quality.The bank posted a 15.9% year-on-year (YoY) rise in standalone net profit to Rs 14,805 crore for the June quarter, compared with Rs 12,768 crore in the corresponding period last year. Net interest income (NII) increased 12.7% YoY to Rs 24,384 crore from Rs 21,635 crore.Should you buy, sell or hold ICICI Bank shares?Bernstein has upgraded ICICI Bank to 'Outperform' from 'Market-Perform' and set a target price of Rs 1,800, implying a 27% upside. The brokerage believes the bank has returned to a higher growth trajectory than its peers, supported by benign asset quality and resilient net interest margins (NIMs), which it expects to provide a strong cushion for peak profitability.Bernstein also said the overall outlook for the banking sector has improved materially from earlier expectations, while competitive intensity from public sector banks is beginning to ease. It added that the key risks to its outlook are macroeconomic rather than bank-specific.Motilal Oswal has reiterated its 'Buy' rating on ICICI Bank with a target price of Rs 1,750, implying a 21% upside, after the lender reported another strong quarter marked by resilient net interest margins (NIMs), healthy core profitability and robust asset quality.

The brokerage expects margins to remain broadly stable through FY27.Provisions came in lower than expected due to a one-off recovery and sustained lower slippages, while the bank retained its conservative credit cost guidance of 50 basis points.Also read: Q1 earnings begin on a strong note as banks fuel double-digit growthMotilal Oswal expects credit costs to remain in the 0.4-0.5% range and believes ICICI Bank is well placed to deliver an average RoA of 2.33% over FY27-28E. It also highlighted the bank's industry-leading asset quality and contingency buffer of Rs 131 billion, equivalent to 0.8% of loans, and raised its earnings estimates by 4-5%, factoring in an FY28E RoA/RoE of 2.3%/16.8%.JM Financial has maintained its 'Buy' rating on ICICI Bank while raising its target price to Rs 1,710 from Rs 1,630, implying an upside of around 18.4%. The brokerage believes ICICI Bank deserves to trade at a premium valuation among large private sector banks, supported by its sector-leading loan growth, superior net interest margin (NIM) management and strong asset quality trends. Reflecting the strong operating performance, JM Financial has raised its FY27 and FY28 EPS estimates by 2-5% and expects the bank to deliver an average RoA of around 2.3% and an RoE of about 17% over FY27-28E.Centrum has retained its 'Buy' rating on ICICI Bank with a target price of Rs 1,900, implying an upside of around 32%.