Target: ₹1,670
CMP: ₹1,397.15
ICICI Bank’s (ICICIBC) FY25 annual report emphasises the progress that the bank has made in building a resilient franchise to deliver sustained profitable growth. The bank has strengthened its branch network and credit models to cater to businesses and self-employed customers.
The bank continues to focus on high-yielding segments, supported by data driven onboarding, digital platforms and transaction banking, which also boosts fee income. Business Banking segment has thus emerged as a key growth driver, delivering 34 per cent y-o-y growth in FY25 and contributing about 20 per cent of total loans.
Its ‘Bank to Bank Tech’ theme has witnessed strong digital adoption, with online transactions accounting for around 95 per cent of total transactions. IMobile Pay (10m+ users) and InstaBIZ (3m+ SMEs) are scaling up rapidly, alongside innovations like upgraded Neo Remittance and API Banking 2.0.
The bank’s focus on leveraging technology while scaling up Retail, SME business will increase efficiency, leading to a decline in the C/I ratio to about 36 per cent by FY28E. We estimate ICICI Bank to deliver RoA/RoE of 2.3/16.7 per cent in FY27E and retain our Buy rating with a TP of ₹1,670 (2.7x FY27E ABV + SOTP of ₹270).