ICICI Bank reported a disappointing fourth quarter result on Friday, where profits fell 76 percent to Rs 702 crore year-on-year (YoY), majorly hit by an exceptional provisioning of Rs 3,600 crore.
Speaking to CNBC-TV18, Shyam Srinivasan, MD & CEO of the bank says that internal changes and better management helped in recognizing stressed assets, especially in the corporate sector.
According to a CNBC-TV18 poll, the bank is expected to post a net profit of Rs 193.4 crore in October-December quarter down 27 percent from Rs 264.7 crore in Q3FY15. In Q2 profit was down 33 percent annually as provisions spiked 91 percent.
Much of the slippages during the quarter have come in the corporate and SME loan accounts, says Shyam Srinivasan, MD & CEO of Federal Bank
Profit in September quarter is likely to increase 1 percent to Rs 242.74 crore and net interest income is seen rising 4.8 percent to Rs 635 crore, according to average of estimates of analysts polled by CNBC-TV18.
In an interview with CNBC-TV18, Shyam Srinivasan, MD & CEO of Federal Bank said the Bank's NPAs increased due to a large metal account default and treasury provisions.
Federal Bank's net interest margin for FY15 was 3.27 percent, within the guidance range of 3.23-3.30. Shyam Srinivasan, MD & CEO of Federal Bank, says the goal is to improve on this figure.
Federal Bank's fourth quarter profit is expected to slip 9.4 percent year-on-year to Rs 251.22 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Federal Bank's other income for Q3 jumped by 40 percent to Rs 220 crore against Rs 156.2 crore, Y-o-Y.
Private sector lender Federal Bank is expected to report a 8.2 percent growth in profit after tax at Rs 248.75 crore for the quarter ended December 2014 compared to Rs 230 crore in the year-ago period, according to the average of estimates of analysts polled by CNBC-TV18.
Net interest income is expected to increase by 2 percent Q-o-Q (up 13.3 percent Y-o-Y) to Rs 617.9 crore, according to Motilal Oswal.
Nischal Maheshwari, Head of Research, Edelweiss Securities is positive on Allahabad Bank and OBC from the banking pack and sees them performing well in the future.
Asset quality of Federal Bank was stable during the quarter with the gross non-performing assets (NPA) falling to 2.1 percent from 2.22 percent Q-o-Q and 3.39 percent Y-o-Y.
Net interest income, the difference between interest earned and interest expended, may increase 9.3 percent to Rs 599 crore in the quarter ended September 2014 from Rs 548 crore in same quarter last year.
Nilesh Parikh Edelweiss Financial Services recommends buying OBC given its valuations.
On analysing Larsen and Toubro's Q3 numbers, Dipen Sheth of HDFC Securities was pleasantly surprised to see traction in the Indian revenues of the company. However, going forward he is cautious on the stock and would book profits in the stock if it reaches the levels of Rs 1150-1200.
Federal Bank came out with numbers that saw the asset quality ratios improve and it joins ranks with the likes of South Indian Bank and DCB that did the same. Ekta Batra gives u an update on the numbers.
The bank is hopeful of net interest income (NII) growth of 15-18% in FY15 given the sustained performance on retail and SME and with hopes of growing large corporate credit said Shyam Srinivasan, MD & CEO, Federal Bank.
According to Shyam Shrinivasan, the Federal Bank is likely to maintain its margins at the current levels of 3.30 percent, a climb of 17 bps year-on-year.
According to a CNBC-TV18 poll, profit after tax may slip 25 percent on yearly basis to Rs 162 crore in September quarter, but net interest income is likely to increase 4 percent Y-o-Y to Rs 528 crore.
According to ICICIdirect.com, Federal Bank to report a 75.5 percent growth quarter-on-quarter (degrowth of 13.9 percent year-on-year) in net profit at Rs 185.2 crore.
According to Prabhudas Lilladher, Federal Bank may report a 43.3 percent growth quarter-on-quarter (degrowth of 29.6 percent year-on-year) in net profit at Rs 151.4 crore.
Federal Bank's profit after tax is likely to grow by 6 percent year-on-year to Rs 202 crore and NII may rise by 3 percent Y-o-Y to Rs 504 crore during April-June quarter, according to CNBC-TV18 poll. In previous quarter (Q4FY13), former fell 6.6 percent and later declined 2.3 percent.
Motilal Oswal has come with its March`13 quarterly earning estimates for financial sector. The research firm expects reforms and monetary easing to continue, thereby growth is expected to revive gradually.
In an interview to CNBC-TV18, Shyam Shrinivasan, managing director and chief excutive officer Federal Bank gives his views on the bank's Q3 numbers.