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According to a CNBC TV18 poll of analysts, the bank’s net interest income (NII) is expected to reach ₹19,995.1 crore, reflecting a 9.2% increase year-on-year (YoY) from ₹18,307.9 crore.
Profit after tax (PAT) is projected to rise 7.5% YoY, amounting to ₹11,029.8 crore compared to ₹10,261 crore in the same period last year.
Key factors expected to drive earnings
- Loan and Deposit Growth: Healthy growth in both loan and deposit segments is expected, with deposits estimated to increase by 14.6% YoY to ₹14.8 lakh crore, aligning with similar credit growth. Analysts at Motilal Oswal forecast a 14.6% YoY rise in loans to ₹12.7 lakh crore for the quarter.
- Limited Margin Contraction: ICICI Bank’s net interest margin (NIM) is projected to ease slightly YoY to 4.4% from 4.5%, Brokerages suggest the slight moderation, driven by changing rates, will have a limited impact on profitability.
- Asset quality to see slight hiccup: ICICI’s gross non-performing asset (GNPA) ratio is expected to decline to 2.3% in Q2 FY25 from 2.5% a year ago, while the net NPA (NNPA) is likely to inch up slightly to 0.5% from 0.4% in the previous year, indicating largely stable asset quality.
Also read: TVS Motor Q2 results preview: Sequential margin improvement likely to be the highest among peers
Over the July-September period, ICICI Bank shares surged by 6%, significantly outperforming the benchmark Nifty 50, which gained only 1%. Analysts will closely watch the bank’s guidance on business momentum for the coming quarters.
Q1 FY25 Review
For the first quarter of FY25, ICICI Bank reported a net profit of ₹11,059.1 crore, up 14.6% YoY from ₹9,648.2 crore.
Net interest income (NII) rose by 7.3% YoY to ₹19,552.9 crore, beating market expectations of ₹19,515 crore. A
sset quality was stable, with a gross NPA of 2.15% and NNPA at 0.43%, both showing improvement. On 26 July, ICICI shares closed at ₹1,207.70 on the BSE, up 0.81%.
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