ICICI Bank's bottom-line beats our estimates: Angel Broking

In an interview to CNBC-TV18, Vaibhav Agrawal, banking analyst of Angel Broking says, ICICI Bank’s bottom-line is better than his expectations.

Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video.

Q: What is your view on ICICI Bank Q4 results?

A: The numbers are clearly above our estimates on the bottom-line front. Even on the asset quality, sequentially they have improved it further. So, it seems that a lot of the concerns, which were there around asset quality for the corporate book etc, have not really materialised to that extent in this quarter.

Q: The market is expecting to see something in terms of restructuring of assets. What is your own estimate in terms of how much they may have to restructure this quarter?

A: We do know that there is a certain amount of pipeline that they have for loans like GTL etc, which were restructured by other banks and they are going to do it this quarter. So, put together they would have something like Rs 3,000 crore. So, we would expect about anywhere between 10-15% increase in that number, atleast could be higher as well.

Q: Are analysts working with a bit of a lag over the last few quarters in terms of expectations from ICICI Bank? What it delivers because they have been beating estimates?

A: That is true actually. ICICI Bank has been a special case where the management has really turned around the quality of earnings very substantially. Every quarter whether on the asset quality or even on the margins they have met and in general even exceeded their own guidance.