ICICI Bank may report a Rs 8,540-crore profit for the quarter ended March 2023, a rise of 30.2 percent over last year, the average of a poll of three brokerages estimates before the lender declares its financial results on April 22.
Net interest income (NII) at ICICI Bank is expected to increase 37.73 percent YoY (up 5.7 percent QoQ) to Rs 17,712 crore, according to the average poll of estimates.
The Q4 results of ICICI Bank, India’s second-largest private sector bank by market capitalisation, are coming days after its larger peer HDFC Bank reporting a 20 percent rise in net profits. The Reserve Bank of India also has recently paused key interest rates for now but hinted at possible increases going forward in its battle to further weaken inflation without damaging economic growth. The US Federal Reserve, whereas, still combats the persistently high US inflation challenge with one more rate hike anticipated in the next FOMC meeting. It is due to the same only that fears of a global recession are rising.
Brokerage firm Prabhudas Lilladher expects ICICI Bank to report net profit at Rs 9,240.9 crore, up 31.7 percent year-on-year (up 11.2 percent quarter-on-quarter). Net Interest Income (NII) is expected to increase by 41.5 percent Y-o-Y (up 9.1 percent Q-o-Q) to Rs 17,958 crore. Pre Provision Operating Profit (PPOP) is likely to rise by 40.1 percent Y-o-Y (up 8.7 percent Q-o-Q) to Rs 14,421.2 crore.
Motilal Oswal expects ICICI Bank to report net profit of Rs 9,155.5 crore, up 30.4 percent year-on-year (up 10.2 percent quarter-on-quarter). NII is expected to increase 38.6 percent Y-o-Y (up 6.1 percent Q-o-Q) to Rs 17,466.4 crore. Pre Provision Operating Profit (PPOP) is likely to rise by 36.5 percent Y-o-Y (up 5.8 percent Q-o-Q) to Rs 14,047.4 crore.
Whereas, Kotak Institutional Equities anticipates the pre-provision profit to grow by around 33 percent YoY. “We expect a PPOP to grow at ~33 percent YoY as we expect most operating metrics to be stable to positive. Loan growth to be solid at around 20 percent YoY driven by healthy contribution from all segments. The rate cycle is still favorable but scope for NIM expansion is coming to an end. We are building flat NIM QoQ at 4.7 percent. Key concern would be the reversal of NIM as cost of funds is starting to move up sharply for the sector, especially with slower CASA growth.”
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ICICI Bank's board will also meet on April 22 to consider and approve fundraising by way of issuance of debt securities, including NCDs, bonds and other instruments on a private placement basis. The fundraising, if approved, will be executed in one or multiple tranches. The board might also consider dividends for existing shareholders in the meeting.
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