Jefferies names ICICI Bank stock a top pick after RBI rate hike

Published on 10/08/2026 at 10:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Jefferies sees 75-100 basis points of further hikes for banks. ICICI Bank stock costs EUR 25.30 after EUR 24.90 on October 8, 2026.

IBN, US45104G1040, Illustration mit AI erstellt.

ICICI Bank stock (ISIN US45104G1040) was trading at EUR 25.30 at Lang & Schwarz on October 8, 2026 at 10:03 a.m. CEST, up 1.61 percent versus the October 7 prior close of EUR 24.90. After the Reserve Bank of India raised its repo rate by 25 basis points to 5.50 percent, NDTV Profit reported on October 8, 2026 that Jefferies named ICICI Bank among its top large-cap bank picks.

Rate exposure drives the call

Jefferies now sees 75-100 basis points of further rate hikes, compared with its earlier expectation of 50 basis points. The brokerage said banks with more External Benchmark Lending Rate-linked loans and manageable loan-to-deposit ratios could benefit over the next three to six months.

ICICI Bank was identified as one of the higher beneficiaries because of its loan repricing exposure and manageable domestic loan-to-deposit ratio. Jefferies also expects a 75-basis-point rate increase flowing through to yields, with banks retaining 15 percent of the benefit, to support earnings upgrades.

Target points to a wider debate

The Economic Times reported on October 7, 2026 that Jefferies maintained a Buy rating on ICICI Bank with a target of INR 1,750. The report also said the brokerage expects Indian financials to deliver 14 percent earnings growth in fiscal 2028, compared with 7 percent for global financials.

The rate thesis is therefore tied to balance-sheet sensitivity rather than a broad banking call. Jefferies said Indian banks had underperformed global banks by 55 percentage points over the previous two years, making loan repricing and funding costs central variables for the upcoming results.

October results set the next test

ICICI Bank is scheduled to consider unaudited standalone and consolidated financial results for the quarter and six months ending September 30, 2026, on October 17, 2026, according to StockTitan. The filing also states that the trading window is closed from October 1 through October 19, 2026.

For the market, the October results will provide the first direct test of whether rate-sensitive lending can offset pressure from tighter liquidity. The Lang & Schwarz quote was EUR 25.30 on October 8, 2026, with a USD 99.6 billion market capitalization and a USD 25.08 to USD 33.03 52-week range based on the latest primary-market data.

The further course of trading is shown by the continuously updated real-time quote of ICICI Bank stock.