ICICI Bank gains 4% on robust Q1 nos; brokerages maintain buy

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Share price of ICICI Bank gained 4.5 percent in the early trade after company posted better number in the quarter ended June 2019 (Q1FY20).

The bank posted a profit of Rs 1,908 crore in June quarter (Q1) over lower provisioning and healthy NII growth.

It was against a loss of Rs 119.55 crore reported in the year-ago period and a profit of Rs 969.06 crore in the previous quarter. The profit was partly impacted by lower other income.

Net interest income grew (NII) by 26.8 percent year-on-year to Rs 7,737.43 crore for quarter that ended on June 2019 with healthy loan growth of 15 percent YoY, which beat analyst expectations.

The year-on-year growth in domestic advances was 18 percent at June 2019.

Research house Jefferies has retained buy call on the ICICI Bank and raised target price to Rs 480 from Rs 455 per share.

According to Research house, the steady Q1 with core PPoP driven by better loan growth & steady margin, meanwhile the fees were negatively impacted by lower mutual fund distribution fee.

It expect improvement in core operating profit, while standalone RoE likely to be over 16% by FY21.

Also Read - ICICI Bank posts Q1 profit at Rs 1,908 cr with 27% NII growth; asset quality improves as NPA falls

According to CLSA the company is a high-conviction buy with target at Rs 530 per share.

The company's Q1 PAT is tad below estimates due to higher provisions & higher tax, it said.

CLSA trims earnings but see an earnings turnaround ahead & RoE rising to 15-16 percent.

At 09:24 hrs ICICI Bank was quoting at Rs 427.10, up Rs 11.60, or 2.79 percent on the BSE.