ICICI Bank stock: Declining right now and may be a bit undervalued
By Ankur Chandra | Updated at: Oct 23, 2025 04:18 PM IST
ICICI Bank’s shares are again down today. The stock price is down by 1.11%, trading at Rs 1,366.70 at 2:50 p.m. 23rd October, 2025. Nifty 50 index is up by 0.44% at this time. Nifty Bank index is up by 0.40% at this time. Nifty Private Bank index is up by 0.79%.
ICICI bank stock seeing selling pressure since its September quarter result came
ICICI Bank’s shares are seeing selling pressure since the company announced its September quarter result last week. In the past 5 days, ICICI Bank’s shares have lost more than 3%. The results were marginally above expectations. It posted standalone net profit of Rs 12,359 crore in the quarter. This was a year-on-year (y-o-y) increase of 5.3%. One reason for the rise was the company setting aside a lower provision for bad loans, at Rs 914 crore, in this quarter. It had set aside provision for bad loans of Rs 1,233 crore in the September quarter of the previous year.
Net interest margin in the September 2025 quarter came down by around 4 basis points when compared to the corresponding quarter of the previous year. This may be one reason why the stock price did not gain after the declaration of result. The bank did not make provisions for bad loans on its Kisan credit card loans in this quarter, citing the practice that such provisions are made in the first and third quarters of the fiscal year.
Stock trading at a lower P/E multiple than many of its peers
52-week high price of the stock currently is Rs 1,500. 52-week low price of the stock is Rs 1,186. The stock is currently trading at a P/E ratio of around 18.48. Nifty private bank index is trading at an average P/E ratio of around 19.76. ICICI’s stock is valued at a lower multiple when compared to many of its peers in the industry.
US Federal Reserve is very likely to cut down interest rate in its upcoming monetary policy meeting on October 28th– 29th. RBI may follow suit and cut down interest rate. Lower interest rate scenario may be favorable for ICICI bank. It may increase the demand for loans. It can also have a positive impact in lowering defaults on loans. This in turn can have a positive impact on its non-performing assets ratio.
Reports are coming that India and US may soon reach a trade deal. US may cut existing 50% import duties on Indian goods to 15%-16% as part of the trade deal. This will give a boost to Indian economy, which again will be positive for ICICI’s shares.
ICICI Bank’s shares have underperformed in 2025
Year-to-date in 2025, ICICI Bank’s shares have gained 6.26%. In the same period, Nifty 50 index has gained 9.43%. The stock has underperformed the Nifty 50 index by more than 3% this year. In the past 5 years, ICICI bank’s shares have gained 227%. In the same period, Nifty 50 gained 117%. ICICI Bank’s stock outperformed the Nifty 50 index by around 100% in the past 5 years. That raises the thought that the stock may be a bit undervalued right now.
Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.
Source: NSE
