icici bank q2 results: ICICI Bank will announce Q2 results today. Here’s what to expect. | Techno Glob


New Delhi: Strong credit growth; Driven by margin expansion and falling borrowing costs, India’s second-largest private lender and a favorite of Dalal Street; is expected to report another strong quarter when it releases its Q2 numbers on Saturday.

Here’s what leading brokers expect from ICICI Bank’s Q2 earnings.



On the back of a 22% jump in its net interest income (NII), Motilal Oswal expects ICICI Bank to post a 35.5% rise in its Q2 net profit at Rs 7,468.5 crore. Loan growth is expected to show healthy traction and margins to increase to 4.1%. Borrowing costs are stable and slippages are assumed to be moderate. A review of asset quality is a key observable.

Kotak Institutional Equities

The broker expects PPoP (Profit of Preprocessing Operations) to grow at 15% YoY. “Loan growth remained robust at ~21%, led by healthy contribution from all sectors. NIM will be biased above >4% led by higher asset yields,” it said.

“We expect provisions to remain at low levels given lower slippages and better paths towards recovery/upgrading. While we are building at ~2% (~Rs 45 billion), we are seeing a strong note on recovery to continue causing downward pressure from an asset quality perspective.”

Axis security

Margins are expected to sustain credit growth and continue to strengthen at 23% YoY. “NII growth will be supported by healthy loan growth and marginal NIM expansion is expected to 4.1%. Credit costs are expected to stabilize at normal levels. Moderating slippages with higher recoveries to help asset quality improve,” Axis said.

Nirmal Bang

Nirmal Bang expects NII to grow 19.8% YoY and PAT to grow 22.7% YoY. The loan book is expected to grow at 21.8% and deposits at 11.8%.

City of Philip

Brokerage is expected to continue to raise lending rates and increase lending rates to support NIM (net interest margin).

(Disclaimer: Suggestions, recommendations, views and opinions given by experts are their own. They do not represent the views of Economic Times.)



Source link