ICICI Bank posted 19% sequential earnings growth, beating the 17% consensus, while the stock rose 2.5% to ₹2,800 on NSE, prompting Motilal Oswal to keep its buy rating.
The bank’s return on assets is projected at 2.3‑2.4% this quarter, up from 2.1% last year, underscoring its industry‑leading profitability in a tightening rate environment.
Nitin Aggarwal, Senior Group VP at Motilal Oswal, noted that the rate‑cycle turn has already begun and that higher interest spreads should lift earnings further as the cycle progresses.
HDFC Bank, by contrast, is forecasted to see 15% earnings growth next quarter under new leadership, a sharp jump from the 6‑7% average of recent years, but its net interest margins fell 1.2% YoY, a trend shared across the top private banks.
Motilal Oswal stays neutral on Axis Bank and lists Federal Bank as a favorite mid‑tier pick, warning that sector health will hinge on sustaining loan growth while keeping deposit costs manageable.
ICICI Bank’s next earnings release is slated for May 25, with guidance expected to lift the EPS outlook by 10% from the previous quarter.