Moneycontrol
Last Updated : Jan 31, 2018 08:05 AM IST | Source: CNBC-TV18

ICICI Bank Q3 profit may be lowest in 7 quarters, divergence to be watched closely

Analysts expect loan growth at around 8-10 percent in Q3FY18 against 6.3 percent in Q2FY18.

Country's largest private sector lender ICICI Bank, which will announce earnings on January 31, is expected to report lowest profit in last seven quarters for Q3FY18.

Profit during the quarter is seen falling 25.6 percent to Rs 1,816.8 crore compared to Rs 2,441.8 crore in corresponding period, according to average of estimates of analysts polled by CNBC-TV18.

Net interest income, the difference between interest earned and interest expended, may grow 9.9 percent to Rs 5,893.5 crore from Rs 5,363.4 crore year-on-year.

ICICI Bank shares gained 13 percent during the quarter and surged 28 since the beginning of October 2017.

Key things to watch out for:

Analysts feel the bad loan divergence may get reported during October-December quarter.

Slippages below Rs 4,500 crore would be considered positively by the Street.

Movement of stressed assets (sale to asset reconstruction companies, addition to S4A, 5/25 & strategic debt restructuring) will be seen closely.

Management commentary on (future outlook of) stressed loans will be very important (like their view on stressed assets turn around; slippage from watchlist going ahead; the movement in watchlist, restructuring of stressed accounts via 5/25, S4A or SDR route, etc), analysts said.

Analysts expect loan growth at around 8-10 percent in Q3FY18 against 6.3 percent in Q2FY18.
First Published on Jan 30, 2018 05:45 pm
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