NEW DELHI: Driven by robust credit growth, margin expansion and decreasing credit costs, India’s second largest private lender and Dalal Street’s favorite, is expected to report yet another strong quarter when it releases its Q2 numbers on Saturday.

Here’s what top brokerages expect from ICICI Bank’s Q2 earnings:

Backed by a 22% jump in its net interest income (NII), Motilal Oswal expects ICICI Bank to report a 35.5% rise in its Q2 net profit at Rs 7,468.5 crore. It expects loan growth to see healthy traction and margin to witness expansion to 4.1%. Credit cost is seen as remaining stable and slippages may moderate. Commentary on asset quality is a key monitorable.

Kotak Institutional Equities

The brokerage expects a PPoP (pre-provisioning operating profit) to grow at 15% YoY. “Loan growth to be solid at ~21% led by healthy contribution from all segments. NIM would have an upward bias of >4% largely led by higher asset yields,” it said.

“We expect provisions to remain at low levels given lower slippages and better trends on recovery/upgradation. We are building slippages of ~2% (~Rs 45 billion) but we see a solid commentary on recovery to continue resulting in lower stress coming from asset quality perspective.”

Axis Securities

The brokerage expects credit growth to sustain and remain strong at ~23% YoY. “NII growth to be supported by healthy loan growth and expect marginal NIM expansion to 4.1%. Credit costs expected to stabilize at normalized levels. Moderation in slippages along with higher recoveries to aid asset quality improvement,” Axis said.

Nirmal Bang

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

Phillip Capital

The brokerage expects momentum in loan book to continue and increase in lending rate to support NIM (net interest margin).

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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