The ICICI Bank is expected to post a multiple increase in net profit for the September period, even as the private lender’s net interest income (NII) will see a marginal fall year-on-year.
It will be closely followed by reports on incremental Covid-related provisions, collection quality, BB and below-rated books and restructuring, analysts said.
The numbers of the bank will be helped by a low base, as the profit for the year-ago had fallen by 27.90 percent to Rs 654.96 crore due to a one-time additional fee due to the re-measurement of accrued deferred tax. It is predicted that all these factors will improve the quarterly performance of the bank.
In addition, during the last quarter, the private lender sold 64.42 lakh of the ICICI Securities subsidiary ‘s stock on the open market. During the quarter through eligible institutional placemen, it also raised Rs 15,000 crore
HDFC Securities expects the private lender to record a profit leap of 356.4 percent to Rs 2,990 crore on an NII decline of 1.5 percent to Rs 9,140 crore. Operating profit pre-provision is seen rising 8.9 per cent to Rs 7,490 crore.
Core earnings, including a one-off interest on tax refund, will rise at 13 percent YoY. Non-interest income can decrease sequentially, driven by lower treasury gains. Despite the high coverage ratios of ICICI Bank, we have conservatively taken into account higher provisions of 38.6 percent.
About ICICI Bank
ICICI Bank Limited, with registered offices in Vadodara, Gujarat and corporate offices in Mumbai , Maharashtra, is an Indian multinational banking and financial services firm. It provides a wide range of banking products and financial services in the fields of investment banking, life, non-life insurance, venture capital and wealth management to corporate and institutional clients across a number of distribution platforms and specialist subsidiaries.
The bank has a very wide network across India with 5,275 branches and 15,589 ATMs and has a presence in 17 countries. ICICI Bank is one of India’s Big Four. There are subsidiaries of bank in the UK and Canada, branches in the United States, Singapore, Bahrain, Hong Kong, Qatar , Oman, China and South Africa etc.