ICICI Bank Q2 PAT seen up 5.7% at Rs 2068 cr: Motilal Oswal
According to Motilal Oswal, ICICI Bank may report a 9.1 percent degrowth quarter-on-quarter (up 5.7 percent Y-o-Y) in net profit at Rs 2,068.4 crore.
October 24, 2013 / 18:47 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the banking sector. The brokerage house expects ICICI Bank to report a 9.1 percent degrowth quarter-on-quarter (up 5.7 percent Y-o-Y) in net profit at Rs 2,068.4 crore.
Net interest income of ICICI Bank is expected to increase by 1.4 percent Q-o-Q (up 14.9 percent Y-o-Y) to Rs 3,873.6 crore, according to Motilal Oswal.Motilal Oswal's Report on ICICI Bank:On a YoY basis, loan and deposit growth is expected to be below industry average at 14 percent and 8 percent respectively. Growth in international portfolio is also likely to remain moderate despite the currency depreciation (forms 27 percent of overall loans).Margins are expected to remain stable at 3.3 percent.Fee income growth is expected to be in the high single digit. While net investment gain is expected to be negative (v/s INR 1.7 billion in 2QFY13), higher contribution from dividend income would help overall non-interest income to grow by 5 percent+ Y-o-Y.Bank's asset quality has been holding fairly well over the past few quarters and we expect it to continue, given the benign asset quality
in retail segment. At end-1QFY14, the bank had guided for further restructuring (under CDR) of INR 10-12 billion.Overall, we lower the earnings estimate by 6/10 percent for FY14E/15E, to factor lower risk adjusted margins.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
