ICICI Bank (ICICIBC IN) – Q4FY26 Result Update – Earnings quality continues to remain best-in-class – BUY
Published on 20 Apr 2026
ICICIB saw a good quarter due to better loan growth/asset quality. Lower net slippages and corporate TWO recoveries led to sharp fall in provisions QoQ which resulted in core PAT beat of 10%; core PPoP was in-line. Loan accretion was higher at 6.0% QoQ (PLe 4.5%) that was broad based. Bank was cautious on loan growth in H1CY26 to navigate falling rates, post which growth has consistently improved. Hence, we raise loan CAGR over FY26-28E by 100bps to 14%. Balance sheet remains strong with CET-1 of 16.4%, LCR of 126% and provision buffer of 84bps. Driven by higher loan growth, lower opex and provisions we raise core PAT by avg. 3.2%. We trim multiple to 2.7x from 2.9x but roll forward to FY28 core ABV; tweak TP to INR 1,825 from INR 1,800. Retain ‘BUY’.
