ICICI Bank (ICICIBC IN) – Q3FY26 Result Update – Growth picks up; Mr. Bakshi’s term extended – BUY
Published on 18 Jan 2026
ICICIB saw a soft quarter due to lower core revenue and higher provisions that led to core PAT miss of 5.1%. NIM was weaker due to utilization of investments over cash towards lending, following CRR cut and incremental credit growth being led by corporate and mortgages. Fees were lesser due to weak unsecured growth and competitive pressure on loan related fees. Provisions were a drag due to one-time Rs12.8bn impact related to PSL non-compliance of Rs200-250bn loans following RBI annual review. Two key concerns were dragging stock performance (1) lower loan growth and (2) extension of MD&CEO, Mr. Bakshi’s term. Loan growth has picked-up; bank expects this momentum to continue. Board has approved Mr. Bakshi’s term for 2 years till Sep’28 which alleviates KMP risk. With industry best expected core RoA of 2.2% for FY28E, we maintain multiple on Sep’27 core ABV and keep TP at Rs1,800. Retain ‘BUY’.
