Here's what to expect from ICICI Bank Q4 earnings

Moneycontrol Bureau

India's largest lender ICICI Bank is likely to report 21 percent year-on-year rise in its net profit for fourth quarter (Jan-March) at Rs 2,307 crore. Net interest income or the difference between interest earned and paid out, would grow 17 percent to Rs 3,644 crore, according to a poll estimate by CNBC TV18.

"The net profit will rise due to contained growth in operating expenditures and provisions," Bhavesh Kanani, AVP – Equity Research, Centrum Broking told moneycontrol.com.

"Total income may grow at 11%. Accordingly, the bank's asset quality should remain stable. Overall, ICICI Bank is not expected to spring any ugly surprise. We have given a buy call on ICICI Bank shares," he said.

The loan book is expected to expand more than 16% while deposit growth would surpass the average industry growth. In October-December quarter, domestic loans grew 21 percent. The bank had given guidance of 20 percent loan growth in FY13.

"The bank is trying hard to get back its retail focus. However, it remains to be seen how it is expanding its retail book. It has also slowed down on credit cards front," said a banking analyst from a big brokerage firm.

However, ICICI Bank Q4 may record a marginal rise in its restructuring book quarter-on quarter. The stress might come from large and mid-corp segments. In third quarter, restructuring was at Rs 350.

Since last one year, ICICI Bank shares outperformed Bank Nifty - the broader index for banking stocks, by a wider range. During the period, Bank Nifty rose nearly 23% while ICICI shares shot up 40%.

saikat.das@network18online.com