Anand Rathi has issued a positive outlook on ICICI Bank , maintaining its BUY rating with a target price of ₹1,713. The brokerage firm's assessment comes after analyzing the bank's recent performance trends and strategic positioning in the competitive banking sector.

Financial Performance Analysis

The bank's core financial metrics demonstrated steady progress during the reporting period. Key performance indicators showed consistent growth across multiple parameters:

Excluding one-time items, the bank's operational trends aligned with market expectations. The core pre-provision operating profit growth of 6.9% year-on-year, coupled with a 3.4% quarter-on-quarter increase, reflects the bank's operational efficiency.

Credit Growth and Asset Quality

Credit growth emerged as a significant highlight, accelerating to 11.5% year-on-year compared to 10.3% year-on-year in Q2FY26. This acceleration indicates strengthening loan demand and the bank's ability to capture market opportunities effectively.

Despite the seasonal challenges typically associated with the reporting quarter, asset quality remained stable. Net interest margins also maintained their stability, demonstrating the bank's pricing discipline and portfolio management capabilities.

Leadership and Strategic Outlook

A notable corporate development was the board's decision to re-appoint Mr. Bakhshi as CEO until October 2028. Anand Rathi views this leadership continuity as a positive development for the bank's strategic direction and operational consistency.

Management has provided guidance indicating an acceleration in credit growth going forward, suggesting confidence in the bank's growth trajectory and market positioning.

Valuation and Investment Rationale

Anand Rathi's target price methodology incorporates comprehensive valuation parameters:

The brokerage expects further acceleration in retail-led growth and stable asset quality, projecting the return on equity to remain above 15%. This expectation underpins their positive investment thesis and preference for ICICI Bank over HDFC Bank.

Competitive Positioning

Anand Rathi maintains its preference for ICICI Bank over HDFC Bank, citing the former's relatively better positioning to manage the growth-margin trade-off. This strategic advantage is expected to help ICICI Bank maintain its return on equity differential over HDFC Bank, supporting the positive investment recommendation.

ICICI Bank has successfully completed the allotment of equity shares under its Employee Stock Option Scheme, marking another step in its employee compensation program. The bank allotted 275,884 equity shares on January 19, 2026, as part of the ICICI Bank Employees Stock Option Scheme-2000.

Share Allotment Details

The allotment encompasses specific parameters that define the nature and value of the shares issued to employees.

Approval Process

The allotment received proper authorization through the bank's established governance framework. Two Executive Directors approved the share allotment on January 19, 2026, at 4:38 PM, representing the time of the final approval. This approval was granted under the authority delegated by the Board of Directors during their meeting held on October 21, 2023.

Regulatory Compliance

ICICI Bank fulfilled its disclosure obligations by formally notifying both major stock exchanges about this corporate action. The bank sent official communications to BSE Limited at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai, and National Stock Exchange of India Limited at Exchange Plaza, Bandra-Kurla Complex, Mumbai. The notification was digitally signed by Prashant Mistry from the Associate Leadership Team, ensuring proper authentication and compliance with regulatory requirements.

Employee Stock Option Scheme Context

The ICICI Bank Employees Stock Option Scheme-2000 serves as a key component of the bank's employee retention and incentive strategy. This particular allotment demonstrates the ongoing utilization of the scheme to provide equity-based compensation to eligible employees, aligning their interests with the bank's long-term performance and shareholder value creation.