ICICI Bank's performance in Q2FY25 was strong, with stable asset quality and a 9.5% year-on-year increase in net interest income (NII) to INR 200,480 million. This exceeded estimates by 1.6%, although it represented an 11.3% decline quarter-on-quarter.

The net interest margin for the quarter was 4.27%, down from 4.53% in the same quarter last year. The bank's pre-provision operating profit (PPOP) rose 17.5% year-on-year to INR 167,232 million, and profit after tax increased by 14.5% to INR 117,459 million.

ICICI Bank's loan and deposit portfolios, particularly in the retail and SME segments, have contributed to its competitive position in the Indian banking sector. KR Choksey has raised its price-to-adjusted book value (P/ABV) multiple for ICICI Bank's standalone business to 2.8x, up from 2.6x, based on the bank's strong balance sheet and improving growth trajectory. This adjustment leads to a sum-of-the-parts (SOTP) valuation of INR 1,500 per share, indicating a potential upside of 16.0%. KR Choksey maintains a "BUY" rating on ICICI Bank's shares.