ICICI Bank (ICICIBC IN) – Q2FY27 Result Update – Consistently raising the benchmark – BUY
Published on 18 Oct 2026
ICICIBC saw a stellar quarter with 3.7% beat on core PPoP (HDFCB:in-line, AXSB:miss) due to better NII/fees as loan growth (ex-FCNR) was strong at 7.3% QoQ (AXSB-5.3%, HDFCB-3.4%). Post 10bps QoQ decline in NIM to 4.28%, it may further fall in Q3FY27 due to full FCNR impact. NIM may improve from Q4FY27 led by repo hike and liquidity utilization. Despite being NIM dilutive, ICICIBC garnered sizable FCNR money, gaining a strategic advantage, as substantial fixed-rate funding was mobilized to support future growth amid a rate hike cycle. Due to better loan growth, we raise core PAT for FY27/28E by avg. 5%. We tweak multiple to 2.6 from 2.7x but raise TP to INR 1,900 from INR1,850 as we roll forward to Sep’28 core ABV. Reiterate ‘BUY’.
