ICICI Bank share price falls 4% after mixed Q3 results. Buy, sell or hold?

ICICI Bank share price slumped 4% on Monday's session after mixed Q3 results. Country's second largest private lender, ICICI Bank posted a standalone net profit of ₹11,318 crore for Q3 FY26, marking a 4% decrease compared to the same period last year, primarily due to higher one-off provisions impacting earnings.

Net interest income increased by 7.7% year-on-year, bolstered by stable margins of 4.3%, while loan growth remained robust, particularly in the corporate sector. The quality of assets showed improvement during the quarter, with the gross NPA ratio declining to 1.53%, although elevated provisions affected overall profitability.

Brokerages maintained their optimistic outlook on ICICI Bank shares following the bank's fiscal third-quarter performance, choosing to overlook a profit shortfall attributable to one-time provisions while highlighting consistent operating trends, stable margins, and a strengthening deposit growth.

The announcement of CEO Sandeep Bakhshi’s extended tenure also surfaced as a significant positive, alleviating a persistent concern regarding the stock.

Buy, sell or hold?

According to reports, CLSA reaffirmed its Outperform rating for ICICI Bank, setting a target price of ₹1,700 per share, which suggests a potential increase of more than 20%. CLSA noted that the profit before tax for Q3 fell short of forecasts by approximately 7% due to a one-time provision. When excluding this effect, the brokerage indicated that the bank's adjusted performance was generally aligned with expectations.

As per reports, Jefferies has upheld its Buy rating and increased its target price to ₹1,730 per share, citing the Q3 earnings shortfall due to higher agricultural provisions and the effects of costs related to labor laws.

The brokerage noted that loan growth rose to 12%, driven by increased corporate and mortgage lending, although unsecured retail lending remained weak. Asset quality was reported to be stable, with Jefferies also highlighting that the two-year extension granted to CEO Sandeep Bakhshi until October 2028 ensures continuity and clarity in leadership.

According to reports, Bernstein, which holds a more conservative view, maintained its Market Perform rating with a target price set at ₹1,550 per share. The brokerage noted that the CEO’s re-appointment significantly alleviates a concern regarding the stock; however, it raised concerns about a disappointing quarterly performance.

Nuvama Institutional Equities noted that ICICI’s profit after tax fell short of expectations in the third quarter due to a significant, unexpected provision of ₹12.8 billion on its agricultural portfolio mandated by the RBI, a one-time provision of ₹1.5 billion related to the new labor codes, and a slight underperformance in net interest income and fees.

The Board has extended Mr. Bakhshi's tenure as CEO until October 2028. This is a significant positive development as it alleviates a major concern regarding the stock.

“Maintain ‘BUY’ as we expect asset growth to accelerate, stable NIM and superior asset quality. We are cutting target price to ₹1,670/2.8x FY27E BV from ₹1,750,” said Nuvama.

Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that ICICI Bank's Q3 FY26 results show a mixed bag. Profit after tax stood at ₹11,318 crore, with profit before tax (excluding treasury) at ₹14,957 crore. Provisions jumped to ₹2,556 crore, including ₹1,283 crore in additional standard asset provisions due to RBI's supervisory review. Overall, ICICI Bank's Q3 performance reflects steady growth amidst prudent provisioning.

ICICI Bank share price today

ICICI Bank share price today opened at ₹1,392.15 apiece on the BSE, the stock touched an intraday high of ₹1,399.85, and an intraday low of ₹1,360 per share.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that the stock witnessed a sharp decline in today’s session, slipping below key moving averages. On the indicators front, a bearish crossover is visible in the RSI.

“From a technical perspective, prices are likely to remain under pressure and may retest recent lows around the ₹1,340–1,330 zone. On the upside, the ₹1,410–1,420 range is expected to act as an immediate hurdle,” added Bhosale.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.