Mumbai: Shares of ICICI Bank rose nearly 2% in early trade on Monday after the lender reported a strong performance for the March quarter, supported by steady profit growth, robust loan expansion and improved asset quality.

At around 10:10 am, the stock was trading at Rs 1,373.10 on the BSE, up Rs 25.60 or 1.90% for the day. The positive market reaction reflects investor confidence in the bank’s consistent execution and growth outlook.

Strong profit and dividend boost sentiment

ICICI Bank reported a net profit of approximately Rs 13,702 crore for Q4 FY26, marking an 8.5% increase compared to the same period last year. The earnings growth, though moderate, was supported by strong core income and improved operating efficiency.

Adding to investor optimism, the bank announced a dividend of Rs 12 per share for FY26, higher than Rs 11 per share declared in the previous financial year. The increase in dividend payout signals management’s confidence in the bank’s financial stability and future earnings visibility.

Healthy core income and loan growth

A key highlight of the results was the growth in net interest income (NII), which rose 8.4% year-on-year to around Rs 22,980 crore. This metric, which reflects the difference between interest earned on loans and paid on deposits, is a crucial indicator of a bank’s core profitability.

Loan growth remained a strong driver. ICICI Bank’s advances expanded by 15.8% year-on-year, led by business banking, retail lending and mortgage segments. This pace of growth places the bank ahead of many of its peers in the sector.

On the liabilities side, deposits increased by 11.4%, while CASA (current account savings account) deposits also improved, indicating sustained customer traction and a stable funding base.

Asset quality improves further

Asset quality continued to strengthen, reinforcing investor confidence in the bank’s balance sheet. The gross non-performing asset (NPA) ratio declined to around 1.4%, reflecting effective risk management and recovery efforts.

Provisions also dropped significantly due to recoveries and write-backs, further supporting profitability. Lower bad-loan costs are a key factor in maintaining strong return ratios for banks.

Brokerages remain bullish

Brokerage firms maintained a positive outlook on the stock following the Q4 results. JM Financial described the performance as a “picture-perfect quarter” and reiterated ICICI Bank as its top pick in the banking sector.

Motilal Oswal termed it a “strong all-round performance”, highlighting the bank’s steady growth, resilient margins and controlled credit costs. The brokerage has set a target price of Rs 1,750 for the stock.

JM Financial also raised its target price to Rs 1,630 while maintaining a ‘Buy’ rating, indicating potential upside from current levels.

Should you buy ICICI Bank stock now?

The key question for investors is whether the recent rally leaves room for further upside.

For long-term investors, ICICI Bank continues to remain an attractive option. Its consistent loan growth, improving asset quality, stable margins and strong profitability provide a solid foundation for sustained performance.

However, in the short term, the stock’s movement may be influenced by broader market conditions and trends in the banking sector. After a near-term rally, some consolidation cannot be ruled out.

Conclusion

ICICI Bank’s Q4 performance reinforces its position as one of the strongest private sector lenders in India. With healthy growth metrics, improving asset quality and positive brokerage sentiment, the bank remains well placed for the future.

While long-term investors may continue to find value in the stock, short-term traders should watch market trends closely before making fresh entries.


(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)