ICICI Bank Share Price Valuation Analysis April 2026
ICICI Bank Ltd.
ICICI Bank is India’s second-largest private sector bank by consolidated assets, with a balance sheet exceeding ₹27.5 lakh crore as of December 2025. Incorporated in 1994 as part of the ICICI Group (itself originating from a 1955 World Bank initiative to finance industrial development), the bank has evolved into a full-service financial institution spanning retail banking, corporate banking, treasury, investment banking, and insurance through subsidiaries including ICICI Prudential Life, ICICI Lombard, ICICI Securities, and the recently-listed ICICI Prudential AMC.
The bank’s revenue in FY25 was ₹1.82 trillion, growing 27.6% YoY. Revenue is well diversified: approximately 30% from retail banking, 28% from treasury, 17% from wholesale banking, and 12% from life insurance subsidiaries. With over 15 countries of presence, 6,500+ branches across India, and the iMobile Pay platform boasting over 30 million users, ICICI Bank combines scale, digital prowess, and a strong brand moat. A key strategic anchor is its MD & CEO Sandeep Bakhshi, whose tenure has just been extended to October 2028 — a significant signal of management continuity and strategic stability.
| Metric | FY22 | FY23 | FY24 | FY25 | Q3 FY26 |
|---|---|---|---|---|---|
| Net Interest Income (₹ Cr) | 42,906 | 54,133 | 67,982 | 77,500 | 21,932 |
| Net Profit (₹ Cr) | 23,339 | 31,896 | 40,888 | 51,029 | 11,318 |
| NIM (%) | 3.68% | 4.00% | 4.25% | 4.30% | 4.30% |
| Gross NPA (%) | 3.60% | 2.81% | 2.16% | 1.67% | 1.53% |
| Net NPA (%) | 0.76% | 0.48% | 0.42% | 0.42% | 0.37% |
| ROE (%) | 13.7% | 16.2% | 17.8% | 18.0% | 16.0%* |
| ROA (%) | 1.35% | 1.91% | 2.10% | 2.20% | 2.10%* |
| Total Deposits (₹ Bn) | 9,924 | 11,531 | 14,128 | 16,103 | 16,596 |
| EPS (₹) | 33.0 | 46.0 | 58.4 | 72.6 | 68.6† |
| YoY PAT Growth | — | +36.7% | +28.2% | +24.8% | -4.0%‡ |
* 9-month FY26 annualised. † TTM. ‡ Q3 FY26 standalone, impacted by one-time RBI-mandated provision of ₹1,283 Cr on agricultural loans.
The 5-year trajectory is exceptional: NII has nearly doubled, PAT has grown 2.2x since FY22, and asset quality has transformed dramatically with GNPA more than halving from 3.6% to 1.53%. NIM has steadily expanded from 3.68% to 4.30%, reflecting better pricing discipline and a favorable shift in loan mix towards higher-yielding retail and SME segments. The Q3 FY26 profit dip of 4% YoY is a one-off — the underlying business excluding the RBI-mandated provision would have shown a positive 4.1% YoY growth in PAT.
ICICI Bank is positioned at an inflection where the quality of its loan book, liability franchise, and subsidiary ecosystem can drive sustained compounding over FY26–28. Analysts project loans, deposits, and EPS to grow at 13%, 16%, and 14% CAGR respectively. Pre-Provision Operating Profit (PPoP) CAGR is forecast at 17.6% over FY26–28.
The bank’s digital strategy remains a key differentiator — with iMobile Pay and merchant ecosystem, digital disbursals now account for a majority of retail loans. The ICICI Prudential AMC IPO (December 2025) has already started unlocking subsidiary value. PFRDA approval to fully acquire ICICI Prudential Pension Funds is another value-accretive move. Deposit CAGR is guided at 15% over FY26–28, which will provide a stable, granular funding base to sustain loan growth without undue NIM pressure.
| Metric | FY25A | FY26E | FY27E | FY28E |
|---|---|---|---|---|
| NII (₹ Cr) | 77,500 | 85,000 | 97,000 | 1,12,000 |
| PAT (₹ Cr) | 51,029 | 52,000 | 60,000 | 70,500 |
| EPS (₹) | 72.6 | 74 | 85 | 100 |
| NIM (%) | 4.30% | 4.25% | 4.20% | 4.20% |
| Gross NPA (%) | 1.67% | 1.55% | 1.50% | 1.43% |
| ROE (%) | 18.0% | 17.5% | 17.8% | 18.0% |
| P/E at CMP (x) | 17.4x | 17.0x | 14.8x | 12.6x |
| Bank | CMP (₹) | Mkt Cap (₹ Cr) | P/E (x) | P/B (x) | ROE (%) | NIM (%) | GNPA (%) |
|---|---|---|---|---|---|---|---|
| ICICI Bank | 1,260 | 8,80,000 | 17.8 | 2.76 | 18.0 | 4.30 | 1.53 |
| HDFC Bank | 1,730 | 13,20,000 | 19.5 | 2.40 | 14.5 | 3.40 | 1.42 |
| Kotak Mahindra Bank | 2,080 | 4,15,000 | 20.2 | 3.10 | 15.8 | 4.93 | 1.50 |
| Axis Bank | 1,160 | 3,60,000 | 14.2 | 1.95 | 14.2 | 4.02 | 1.46 |
| SBI | 980 | 8,75,000 | 9.5 | 1.60 | 17.5 | 3.35 | 2.00 |
Source: BSE/NSE data, analyst estimates. Figures approximate as of late March 2026. ICICI Bank highlighted in gold.
ICICI Bank stands out with the best combination of ROE (18%), NIM (4.3%), and asset quality trajectory (GNPA declining to 1.53%) among large-cap peers. While trading at a slight premium to HDFC Bank on P/B, it justifies this with higher NIM and faster profit growth. Compared to Axis Bank (cheaper at 14.2x PE), ICICI Bank’s superior asset quality and ROA (~2.1% vs ~1.7% for Axis) support the premium. The stock currently trades at ~2.76x P/B — reasonable for a bank delivering 18% ROE and improving quality.
