ICICI Bank's asset quality likely to be stable in Q3

By Nayantara Rai, Research Analyst at CNBC-TV18

Country's second largest lender ICICI Bank is expected to report a profit-after-tax (PAT) of Rs 1,621 crore in the third quarter of FY12, according to a CNBC-TV18 poll. This translates into an increase of 13% as compared to Rs 1,437 crore in the corresponding quarter of last fiscal.
Net interest income is seen going up by 15% to Rs 2,650 crore from Rs 2,311 crore year-on-year. Expectations
- Marginal increase in NIMs of 6-8 bps as deposits have stopped re-pricing
- Loan growth likely to be 18-19%
- Fee income to remain moderate at 12%
- Asset quality expected to continue to be stable
- Strong growth in corporate segment over last 2 years may lead to increase in restructured portfolio
- Slippages could remain at 2Q levels of 1.6% of lagged loans (Rs 780 crore)
- KFA not an NPL for ICICI Bank (exposure is around Rs 400 crore)
- Too much of an increase in provisions not expected
- Restructured loans could increase by close to Rs 500 crore
* (Restructured loans as on September: Rs 2500 crore)
* Restructuring pipeline includes GTL (Rs 650 crore) and 3i infotech (Rs 500 crore)