ICICI Bank Limited: Comprehensive Stock Analysis Report | Scrolls

by KarNivesh | 26 August, 2025

ICICI Bank Limited Comprehensive Stock Analysis Report- Scrolls.pdf

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Overview

ICICI Bank Limited (NSE: ICICIBANK) is one of India’s largest private sector banks with robust financial performance and strong market positioning. As of August 2025, the stock trades at ₹1,433.20, delivering a 47.7% gain over two years and 11.7% year-to-date growth. With a market capitalization of about ₹10.25 lakh crore, ICICI Bank is the second-largest bank in India after HDFC Bank. Its return on equity (ROE) is 16.45% and return on assets (ROA) 2.2%, both above industry averages, supported by high asset quality (Net NPA 0.41%) and a capital adequacy ratio of 17%.

Business Model & Operations: Established in 1994 and headquartered in Mumbai, ICICI Bank has transformed from a development finance institution into a diversified financial services provider. It serves over 50 million customers through seven segments: retail banking (45% revenue), corporate banking (25%), rural and inclusive banking (12%), SME and business banking (10%), international (3%), transaction (3%), and government banking (2%). The bank has an extensive network of 5,400+ branches, 16,000+ ATMs, and a strong digital presence. It operates in six overseas markets and has representative offices in ten countries.

ICICI Bank Business Segment Revenue Contribution - Retail banking dominates with 45% share

Financial Performance: ICICI Bank has consistently demonstrated strong revenue and profitability growth. Quarterly revenues increased from ₹57,541 crore (Q2 FY24) to ₹74,576 crore (Q1 FY26), a 29.6% rise over six quarters. Net profits rose 45.8% over the same period to ₹13,558 crore in Q1 FY26, growing faster than peers. EPS also improved from ₹13.26 to ₹19.02. Net interest income reached ₹21,193 crore in Q4 FY25, supported by healthy fee income. Key financial metrics like ROE (16.45%), ROA (2.2%), ROCE (19.8%), NIM (4.32%), and cost-to-income ratio (38%) consistently outshine industry norms. Valuation & Peer Position: The stock trades at a P/E ratio of 19.49 and P/B ratio of 3.10, reflecting justified premium valuations. Among private banks, ICICI Bank’s ROE exceeds HDFC (13.56%), Kotak (14.04%), and Axis (14.98%). Its superior NIM (4.41%) and strong loan-to-deposit ratio highlight operational excellence.

Asset Quality & Risk Management: ICICI maintains one of the best asset quality profiles in India. Gross NPAs stand at 1.67% and Net NPAs at 0.41%, among the lowest in the industry. Provision coverage is 75.3%, indicating prudent risk management. The bank uses advanced analytics and digital tools for credit assessment and risk monitoring.

Capital & Liquidity Strength: The total capital adequacy ratio is 17%, well above regulatory requirements. Deposits reached ₹16.10 lakh crore (March 2025), growing 14% YoY, with a CASA ratio of 38.4%. Loan-to-deposit ratio remains at a conservative 82.4%.

Growth Drivers: Retail loans (54.9% of total loans) grew 19.4% YoY, rural loans 17.2%, and SME loans 29.7%. The bank is investing heavily in digital platforms (2,000+ APIs), AI-driven services, and fintech collaborations, positioning itself for future growth. It benefits from India’s expanding economy, digital payments boom, and wealth management opportunities.

Conclusion: ICICI Bank combines financial strength, digital leadership, and diversified operations, making it a premier investment opportunity in India’s fast-growing banking sector.