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Amidst the ongoing changes in ICICI Bank, the management is working rapidly on a new strategy. Responsibilities of the teams are being redefined so that the work can become more smooth. These steps are expected to have a big impact on the company’s performance in the coming months. Due to this, we may see a rise in the shares.
New Delhi. Shares of ICICI Bank have not performed as well as other big banks this year, but brokerage firm Jefferies believes that this slowdown will not last long. In its latest report, Jefferies has reiterated ‘Buy’ rating on ICICI Bank and has set the target price of the share at Rs 1,760, which is about 31% above the current level. The firm says that whatever apprehensions there were about the CEO of the bank, they have already been incorporated in the market. The bank’s strong balance sheet, better profitability and continuously increasing growth can keep it on top in the sector.
Jefferies confident in leadership change
Jefferies says CEO Sandeep Bakshi’s tenure is till October 2026, and even if he decides not to seek extension, there will be no major impact on the bank. In the history of ICICI, from KV Kamath to Chanda Kochhar and Bakshi himself, all have been internally promoted leaders. This model will ensure stability in the future also. The report said that executive directors Rakesh Jha, Sandeep Batra and Ajay Gupta could be possible successors, which further reduces the concern about succession.
Operating performance still strong
ICICI Bank stock has risen only 5 percent this year, while the Nifty Bank index has risen 13 percent. Jefferies believes that this difference is only the result of investors’ caution, not performance. The bank’s ROA is estimated to be 2.4 percent in FY25, while NIM will remain around 4.5 percent. Loan growth is expected to remain at 14 percent CAGR till FY28. Whereas GNPA may come down to 1.4 percent in FY26. This means that the base business of the bank is strong and there is a possibility of stable growth in the long run.
Valuations attractive, many triggers for investors
Jefferies says that the current valuation of ICICI Bank already shows some caution. The stock is trading at around 15 times FY26 adjusted earnings, which is lower than banks like HDFC Bank and Kotak Bank. The brokerage has valued the bank’s core business at Rs 1,464 per share and that of subsidiaries at Rs 298 per share, which together makes a target of Rs 1,760. Clarity on CEO succession, strong deposit growth and stable margins could lead to a rating upgrade for the stock in the coming months.
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