homeearnings NewsICICI Bank Q3 earnings preview: CNBC TV18 poll expects NII to rise, asset quality to remain stable
ICICI Bank Q3 earnings preview: CNBC-TV18 poll expects NII to rise, asset quality to remain stable
As per a CNBC-TV18 poll, the bank is expected to register a 12.2% growth in its net interest income (NII) and profit after tax (PAT) is anticipated to show a 20.3% increase. Kotak Securities estimates the bank's loan growth for the third quarter to be 18.6% year on year and 4% sequentially. They also anticipate an increase in provisions and slippages on a quarter-on-quarter basis.
ICICI Bank, a leading player in the banking sector, is set to announce its third-quarter earnings for the period ended December 31, 2023, on Saturday, January 20.
As per a CNBC-TV18 poll, the bank is expected to register a 12.2% growth in its net interest income (NII) for Q3FY24, reaching Rs 18,468.7 crore compared to Rs 16,465 crore in the corresponding quarter of the previous year.
The profit after tax (PAT) is anticipated to show a 20.3% increase, reaching Rs 9,997.1 crore from Rs 8,311.9 crore on a year-on-year basis.
Kotak Securities estimates the bank's loan growth for the third quarter to be 18.6% year on year and 4% sequentially. They also anticipate an increase in provisions and slippages on a quarter-on-quarter basis.
Morgan Stanley projects a slippage of Rs 5,250 crore, up from Rs 4,687 crore in the preceding quarter, and predicts the bank's net interest margin (NIM) to face pressure, decreasing to 4.73% compared to 4.9% in the previous quarter.
Despite these challenges, asset quality is expected to remain stable. Motilal Oswal forecasts a gross non-performing asset (GNPA) ratio of 2.5%, a slight increase from 2.48% in Q2FY24.
Analysts emphasize that the management's commentary on loan and deposit growth will play a crucial role in determining the stock's future performance.
On Friday, ICICI Bank's stock witnessed a 1.38% increase, closing at Rs 1,000 per share. The Mumbai- headquartered company boasts a market cap of Rs 7,00,989 crore and has delivered returns of approximately 7% over the last three months and 15% over the past year.
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