HDFC Securities Pick of the Week 05th Oct'26: ICICI Bank Ltd

ICICI Bank continues to strengthen its operating model through simplified processes, sharper data analytics, AI adoption, and risk‑calibrated profitable growth. Superior tech and distribution investments should boost operating leverage, helping offset normalizing credit costs and sustain industry‑leading profitability (RoA/RoE: 2.5%/17.1% in Q1FY27).

A strong deposit franchise and expected retail‑loan uptick support growth leadership. NIMs are likely to reflate to ~4.6% in FY27E, factoring in a 50‑bps policy‑rate hike.