ICICI Bank tops Axis Direct's banking list
Axis Direct ranked ICICI Bank among its top bank picks following the Q1 FY27 earnings season, citing 20% year-on-year loan growth and the strongest advances expansion among larger private-sector peers. Advances rose 5% sequentially, led by business banking, rural loans and corporate segments, while credit costs held at 32 basis points with management guiding normalised costs near 50 basis points. The brokerage assigned a Buy rating with a target price of Rs 1,800.
What changed in the quarter
Net interest margins stayed stable, supported by disciplined pricing and balance-sheet management, with Axis Direct expecting margins to remain range-bound at 4.3-4.4%. Asset quality remained resilient through the period, reinforcing the bank's positioning after the Q1 results season.
Broader banking coverage and sector backdrop
Axis Direct's banking review spanned public-sector, large private and small finance lenders, noting that system credit growth accelerated to 18% year-on-year, driven by corporate, SME and select retail segments. Small and mid-size banks posted growth of 27% and 20% respectively, followed by public-sector banks at 18% and larger private banks at 17%. Alongside ICICI Bank, the brokerage highlighted Federal Bank, SBI, Kotak Mahindra Bank and Ujjivan Small Finance Bank as preferred names.
Place in Axis Securities' wider conviction basket
ICICI Bank featured in Axis Securities' August 2026 consolidated conviction report, a broader high-conviction list spanning BFSI, cement, metals, infrastructure, FMCG, automobiles, IT and utilities. Other prominent calls in the basket included UltraTech Cement, Hindalco, APL Apollo Tubes, Bajaj Finance, Britannia Industries, Bajaj Auto, TVS Motor, Maruti Suzuki and SBI, positioning ICICI Bank within a diversified cross-sector recommendation set rather than a standalone call.
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