ICICI Bank's July-September quarter profit and net interest income growth is expected to be similar to June quarter. Profit is likely to increase 11.1 percent to Rs 3,009 crore and net interest income may climb 13.2 percent to Rs 5,273 crore compared to year-ago period, according to average of estimates of analysts polled by CNBC-TV18. Earnings will be announced on October 30.
Profit growth always depends on factors such as provisions, operating profit and other income. In Q1, there was a 31 percent increase in provisions, 5 percent rise in other income and 11.5 percent jump in operating profit year-on-year.
Net interest margin is likely to see a 5-7 basis points improvement over 3.54 percent in Q1. Loan growth is likely to remain around 15 percent during the quarter.
Asset quality of the country's largest private sector lender will be closely watched, especially after its peer Axis Bank raised asset quality issues during July-September quarter.
As of June quarter, ICICI Bank retained its asset quality guidance saying FY16 will see lower stressed asset additions compared to previous year and it expects stability on asset quality going forward.
Even similar sentiment was reiterated in Macquarie's management meet during the quarter, wherein ICICI reiterated incremental stress creation in FY16 should be lower compared to previous year.
Analysts expect Rs 1,500-1,800 crore slippages in Q2 but slippages from restructured book (which was only Rs 292 crore in June quarter) will also be watched.
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