Goldman lifts ICICI Bank target to ₹2,000 amid 53 buys

Shares of Paytm, YES Bank, SBI, Bank of Baroda, and others rose after NPCI introduced a 0.4% fee on UPI payments over ₹2,000 to merchants. The fee, effective October 15, will not apply to P2P transactions or small payments. Paytm and banks may benefit from the new MDR, with issuer banks receiving 40% of the revenue.

The Reserve Bank of India approved ICICI Prudential AMC's proposal to acquire up to 9.95% stake in CSB Bank, DCB Bank, and AU Small Finance Bank. The acquisition must be completed within one year. This follows a similar approval in February 2026 for eight other private lenders. The move is expected to boost trading interest and long-term price support for these banks.

ICICI Bank reported a 15.5% YoY rise in Q1 net profit to Rs 12,768.21 crore, with total income up 11.9% to Rs 51,451.81 crore. Net interest income increased 10.6% to Rs 21,635 crore. The bank's net interest margin narrowed to 4.34%. Provisions rose, but the NPA ratio improved. The board approved the acquisition of ICICI Prudential Pension Funds Management Company for Rs 203.5 crore, pending regulatory approvals.

Goldman Sachs raised its target price for ICICI Bank to Rs 2,000, suggesting a 40% upside from its last close of Rs 1,423.60. The bank secured $17.9 billion in FCNR deposits, which Goldman believes strengthens its liquidity and funding position, leading to a modest EPS upgrade of 0.4% to 3% over the next three years.

The Reserve Bank of India approved LIC to acquire up to 9.99% of ICICI Bank within a year. LIC currently holds 4.35% and may increase its stake, subject to regulations. The approval does not guarantee an immediate purchase.

China's finance ministry will inject $54B into state-owned insurers and banks. China Life Insurance receives $5.2B, China Taiping gets $1B, and others also benefit. Three state banks, including Agricultural Bank of China and ICBC, will raise $290B to bolster capital, supporting credit expansion and economic growth.