ICICI Bank Q4 Preview: Private lender’s profit, NII likely to grow in double digits, asset quality may improve
ICICI Bank's profit may come in at Rs 8,850 crore for the fourth quarter of the last fiscal year, a 26 per cent increase on a year-on-year basis, according to Zee Business research.
ICICI Bank – India’s second-largest private lender – is expected to report a robust set of earnings for the quarter ended March 2023 (Q4FY23), with analysts expecting double-digit percentage growth in both the top-line and the bottom-line. They also expect improvement in the bank's asset quality.
ICICI Bank will report its financial results on Saturday, April 22.
According to Zee Business research, the banking major’s profit may stand at Rs 8,850 crore, which translates to a 26 per cent increase compared with the corresponding period a year ago.
The analysts estimate ICICI Bank's net interest income (NII) – or the difference between interest earned and interest paid – at Rs 17,200 crore for the three-month period, which would mean growth of 36.5 per cent.
ICICI Bank's net interest margin (NIM) – a key measure of profitability for lenders – is estimated to be around 4.7-4.8 per cent for a three–month period, aided by a rapid rise in benchmark interest rates, according to Zee Business research.
The bank is likely to report improvement in its asset quality, gauged by the percentage of bad loans in total loans.
According to the research, ICICI Bank's gross non-performing assets (NPAs) – or bad loans – as a percentage of total loans are estimated at 2.9 per cent for the quarter ended March 2023, as against 3.07 per cent for the previous three months (Q3Fy23). The analysts peg the lender's net NPAs at 0.5 per cent for the March quarter as against 0.55 per cent for the previous three months.
ICICI Bank's loan growth is estimated to be around 18 per cent amid improvement in the SME and retail segments, and deposit growth ta 9-10 per cent, according to the research.
ICICI Bank shares finished with a loss of 0.5 per cent on Friday amid a listless session on Dalal Street, ahead of the lender's scheduled earnings announcement.
Last week, HDFC Bank, India’s largest lender by market value, had reported a strong set of earnings for the March quarter.
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
01:26 AM IST