ICICI Bank Ltd. is Rated Hold by MarketsMOJO

Rating Overview and Context

On 06 February 2026, MarketsMOJO revised ICICI Bank Ltd.’s rating from 'Sell' to 'Hold', reflecting a modest improvement in the company’s overall mojo score, which increased by 3 points from 48 to 51. This adjustment signals a more neutral stance on the stock, suggesting that while the bank is not currently a strong buy, it also does not warrant a sell recommendation. The 'Hold' rating indicates that investors should maintain their existing positions and monitor the stock closely for further developments.

Here’s How ICICI Bank Looks Today

As of 14 March 2026, ICICI Bank Ltd. remains a large-cap leader in the private sector banking space, with a market capitalisation of approximately ₹9,09,691 crores. It holds the position of the second largest company in its sector, accounting for 26.57% of the entire private banking industry, just behind HDFC Bank. The bank’s annual sales stand at ₹1,69,101.50 crores, representing 18.05% of the sector’s total revenue.

Quality Assessment

The bank’s quality grade is rated as excellent, underpinned by strong long-term fundamentals. ICICI Bank has demonstrated a robust average Return on Assets (ROA) of 2.16%, which is a key indicator of efficient asset utilisation and profitability. Furthermore, the bank’s net profit has grown at an impressive annual rate of 30.41%, reflecting consistent earnings growth over recent years. The Capital Adequacy Ratio (CAR) stands at a healthy 15.03%, signalling strong buffers against risk-weighted assets and a solid capital base to absorb potential losses. These factors collectively contribute to the bank’s high-quality profile and resilience in a competitive banking environment.

Valuation Considerations

ICICI Bank’s valuation is currently assessed as attractive. The stock trades at a Price to Book Value (P/BV) ratio of 2.8, which is relatively discounted compared to its peers’ historical averages. This valuation level suggests that the market is pricing the stock conservatively, potentially offering value to investors seeking exposure to a fundamentally strong bank. The Price/Earnings to Growth (PEG) ratio stands at 2.7, indicating that while earnings growth is solid, the stock price has not fully reflected this momentum. Over the past year, the stock has delivered a modest return of 0.32%, while profits have increased by 8.3%, highlighting a divergence between earnings performance and share price movement.

Financial Trend Analysis

The financial trend for ICICI Bank is currently flat. The latest quarterly results ending December 2025 show some softness, with Profit After Tax (PAT) at ₹11,317.86 crores, down by 8.6% compared to the previous four-quarter average. Profit Before Tax less Other Income (PBT less OI) was recorded at ₹7,432.22 crores, also at a low point. Cash and cash equivalents for the half-year stood at ₹63,668.79 crores, the lowest level in recent periods. These figures suggest a period of consolidation or temporary headwinds, which may be weighing on near-term profitability despite the bank’s strong fundamentals.

Technical Outlook

The technical grade for ICICI Bank is currently bearish. The stock has experienced downward price pressure in recent months, with returns over various time frames reflecting this trend: a 1-day decline of -0.93%, 1-week drop of -4.50%, 1-month fall of -11.32%, and a 3-month decrease of -8.18%. Year-to-date, the stock is down by 6.60%, and over six months it has declined by 11.52%. Despite these short-term technical challenges, the stock’s long-term fundamentals remain intact, suggesting that the current price weakness may present a buying opportunity for patient investors.

Institutional Confidence and Market Position

ICICI Bank enjoys strong institutional backing, with 90.87% of its shares held by institutional investors. This high level of institutional ownership indicates confidence from sophisticated market participants who have the resources and expertise to analyse the bank’s fundamentals thoroughly. Such backing often provides stability to the stock and can be a positive signal for long-term investors.

What the Hold Rating Means for Investors

The 'Hold' rating assigned to ICICI Bank Ltd. by MarketsMOJO suggests a balanced view of the stock’s prospects. Investors are advised to maintain their current holdings rather than initiate new positions or exit existing ones. This rating reflects the bank’s strong quality and attractive valuation, tempered by flat financial trends and bearish technical signals. For investors, this means that while the stock is not currently positioned for aggressive gains, it also does not present immediate risks warranting a sell. The bank’s solid fundamentals and institutional support provide a foundation for potential recovery and growth, but caution is warranted given recent earnings softness and price weakness.

Summary and Outlook

In summary, ICICI Bank Ltd. stands as a fundamentally strong private sector bank with excellent quality metrics and an attractive valuation relative to its peers. The flat financial trend and bearish technical outlook suggest a cautious near-term environment, but the bank’s robust capital adequacy and institutional backing provide confidence in its long-term prospects. Investors should monitor upcoming quarterly results and market developments closely to reassess the stock’s position. The current 'Hold' rating reflects this nuanced view, recommending a watchful approach rather than decisive action.

Key Financial Metrics as of 14 March 2026

• Market Capitalisation: ₹9,09,691 crores
• Return on Assets (ROA): 2.16%
• Capital Adequacy Ratio (CAR): 15.03%
• Price to Book Value (P/BV): 2.8
• PEG Ratio: 2.7
• Institutional Holdings: 90.87%
• 1-Year Stock Return: +0.32%
• Annual Net Profit Growth: 30.41%

These figures highlight the bank’s strong position in the Indian banking sector, balanced by recent earnings softness and technical challenges.

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