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Jan 31, 2013, 12.31 PM IST | Source: CNBC-TV18

ICICI Bank Q3 profit seen up 20% to Rs 2077 cr

Country's largest private sector lender ICICI Bank is set to declare its results for the third quarter of financial year 2012-13 on Thursday. Analysts on an average expect profit after tax of the bank to grow by 20 percent year-on-year to Rs 2,077 crore in the quarter.

Ekta Batra

Markets Anchor & Financial Analyst, CNBC-TV18

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Country's largest private sector lender ICICI Bank is set to declare its results for the third quarter of financial year 2012-13 on Thursday. Analysts on an average expect profit after tax of the bank to grow by 20 percent year-on-year to Rs 2,077 crore in the quarter.

Net interest income (NII) is seen going up by 29 percent to Rs 3,499 crore from Rs 2,712 crore during the same period, according to CNBC-TV18 poll.

The bank reported strong numbers on NII & PAT front and even asset quality & NIMS (3 percent) remained stable for first two quarters of FY13. Hence, analysts are expecting that trend to continue in the October-December quarter too. However, any negative deviation from last quarter will be a disappointment, analysts add.

In July-September quarter of FY13, net interest income of the bank grew by 34 percent YoY to Rs 337 crore and profit after tax rose by 30 percent to Rs 1,956 crore. In April-June quarter, NII jumped 32 percent to Rs 3,193 crore and PAT went up by 36 percent YoY to Rs 1,815 crore.

According to analysts, however, PAT could be restricted on account of higher provisions in December quarter due to higher restructuring.

Asset quality

Analysts feel provisions could be higher but do not expect a significant deviation on gross non performing asset (NPA) / net NPA from Q2FY13. Asset quality has been maintained for the first half of FY13.

However, the restructured pipeline guidance given by the bank post Q2FY13 was Rs 500 crore as against Rs 139 crore in Q2FY13. Hence, analysts say could see an uptake on the restructured book.

Investors should watch out for trend on slippages. Slippages were at Rs 1,220 crore in the second quarter as against Rs 800 crore in first quarter; without Deccan Chronicle, slippages were Rs 720 crore, down 10 percent QoQ.

The bank does not have meaningful exposure to Suzlon while Rs 500 exposure to Deccan Chronicle was written off by the bank in the second quarter.

Analysts expect the bank to maintain net interest margin (NIMs) at 3 percent (which has been steady for the first half of FY13) with international NIMs bouncing back to 1.5 percent.

Shares rose 1.11 percent to close at Rs 1,214.25 on Bombay Stock Exchange on Wednesday.

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