ICICI Bank, India’s second-largest private bank, is scheduled to announce its September quarter results on Saturday, October 26. ICICI Bank’s second quarter results are estimated to be decent due to healthy loan and deposit growth, stable asset quality and residual credit cost. Under control.
ICICI Bank is expected to report a net profit of Rs 11.16 billion in the second quarter of FY25, compared to Rs 10.261 billion in the year-ago period, according to a Livemint survey of estimates from seven brokerages. Recording a growth of 8.2% from
Net interest income (NII), or the difference between interest income and interest expense, is expected to increase by 9.6% year-on-year (YoY) to Rs 20,007.11 billion from Rs 18,308 crore in Q2 FY25. .
Net interest margin (NIM) is expected to contract slightly due to higher deposit costs on a year-over-year basis, but remain stable quarter-on-quarter. Analysts expect ICICI Bank’s NIM to be 4.4% in Q2FY25 as against 4.5% in Q2FY24.
Kotak Institutional Equities expects NIM to fall by 10 bps or potentially stabilize at 4.1%. The NIM compression cycle appears to be gradually slowing down, which is likely to be a significant positive outcome, the report said.
Profit from operations before provisions (PPOP) for the quarter ending September 2024 is expected to grow by 13.7% year-on-year to Rs 16,180 crore from Rs 14,229 crore, supported by healthy fee income and largely stable cost ratios.
Increase in loans and deposits
ICICI Bank’s credit growth in the September quarter is broadly in line with deposit growth and the CD ratio is estimated to remain stable.
Loan growth is expected to be approximately 13%-14% YoY, driven by contributions from all segments (slower unsecured lending).
asset quality
The asset quality of private financial institutions is expected to remain stable going forward. Motilal Oswal Financial Services estimates ICICI Bank’s gross non-performing assets (GNPA) ratio at the end of September 2024 quarter to be around 2.3% as against 2.2% in June quarter. Net NPA ratio for Q2 FY25 is expected to be 0.5% compared to 0.4% QoQ.
Provision growth could be higher as the base quarter’s reserves were negligible. Slippage is estimated at 2%.
ICICI Bank stock price
ICICI Bank’s stock price has delivered decent returns this year. ICICI Bank’s stock price has risen just over 4% in the past three months, but is up more than 25% year-to-date (year-to-date). ICICI Bank stock has increased over 36% in the past year.
At 3 pm, ICICI Bank shares were trading 0.06% higher at ₹1,253.35 on the BSE.
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