Moneycontrol
Last Updated : Jul 30, 2018 07:11 PM IST | Source: Moneycontrol.com

ICICI Bank rises over 3% even as Q1 sees a net loss, provisions jump

The lender had reported a net loss of Rs 119.5 crore in the first quarter of FY19 compared to a profit of Rs 2,049 crore in the same quarter last year.

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Shares of ICICI Bank gained 3 percent on Monday morning as investors reacted to its June quarter performance, where provisions saw a major jump.

The stock touched an intraday high of Rs 303.30 and an intraday low of Rs 298.00.

The lender had reported a net loss of Rs 119.5 crore in the first quarter of FY19 compared to a profit of Rs 2,049 crore in the same quarter last year.

This is the first loss reported by the bank since listing in 1998.

The net interest income or NII, the difference between interest earned and expended, was up 9 percent at Rs 6,102 crore from Rs 5,590 crore.

Provisions were up 129 percent year-on-year (YoY) at Rs 5,971 crore. However, it was down 10 percent quarter on quarter (QoQ). Recoveries for the quarter were at Rs 2,036 crore.

Brokerage: Emkay Rating: Buy | Target: Rs 362

Provisioning charges weigh heavier over core operating performance. It further highlighted that the management is confident in improving profitability to 15 percent of RoE by FY20.

Brokerage: Macquarie | Rating: Outperform | Target: Rs 416

The brokerage said that operating Results were In-line. It is a preferred pick in the asset recovery theme.

The stock has gained around 7 percent in the past one month, while in the past three days, it has risen 9 percent. At 09:25 hrs ICICI Bank was quoting at Rs 298.30, up Rs 5.00, or 1.70 percent, on the BSE.
First Published on Jul 30, 2018 09:31 am
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