ICICI Bank Shares Fall 3% Despite Positive Broker Outlook on Q3 Results

Mumbai: Shares of ICICI Bank declined sharply on Monday, slipping nearly 3 percent in early trade, even as leading brokerages remained optimistic about the bank’s long-term outlook following its third-quarter earnings announcement.

The stock dropped to around ₹1,367 on the NSE, reacting to a quarterly profit decline caused mainly by higher one-time provisions. However, analysts said the core performance of the bank remains stable, with steady loan growth, healthy margins, and improving asset quality.

Profit Impacted by One-Time Provisions

ICICI Bank reported a 4 percent year-on-year fall in standalone net profit to ₹11,318 crore for the quarter ended December 2025. The dip was largely attributed to elevated provisions booked during the quarter.

Despite the profit decline, the bank’s net interest income rose by 7.7 percent, supported by stable margins of 4.3 percent. Loan growth remained healthy, driven mainly by the corporate segment, while asset quality improved with the gross NPA ratio easing to 1.53 percent.

CEO Tenure Extension Boosts Confidence

Brokerages highlighted the extension of CEO Sandeep Bakhshi’s tenure until October 2028 as a key positive development. Analysts said the move provides leadership continuity and removes uncertainty around top management, strengthening investor confidence in the bank’s long-term strategy.

Brokerages Remain Bullish

Several global and domestic brokerages reiterated positive ratings on the stock:

• CLSA maintained an Outperform rating with a target price of ₹1,700, citing strong loan growth and stable margins.
• Jefferies retained its Buy call and raised its target to ₹1,730, noting improved loan growth and stable asset quality.
• Kotak Institutional Equities reaffirmed an Add rating with a higher target of ₹1,800, pointing to steady deposit growth and improving credit trends.
• Bernstein, while cautious, acknowledged that the CEO’s re-appointment reduces a key overhang on the stock.

Stock Performance and Outlook

Despite Monday’s decline, ICICI Bank shares have gained over 15 percent in the past one year, outperforming the broader Nifty 50 index. Analysts said near-term volatility may continue, but the bank’s strong balance sheet, improving asset quality, and leadership stability position it well for sustained growth.

(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)

📌 Sources & References

• NSE India – https://www.nseindia.com
• ICICI Bank Investor Presentation – https://www.icicibank.com
• Broker Reports: CLSA, Jefferies, Kotak Institutional Equities