Global brokerage firms recommend to stay put in ICICI Bank; raise respective target prices post Q3 results
Q3 earnings indicate a clear sky making ICICI Bank an exciting yet relatively safe investment bet for long term
Overall brokerages expect other income (non-interest income) as well as operating profit to grow more than 20 percent.
Net Interest Income (NII) is expected to increase by 18.5 percent Y-o-Y (up 5.4 percent Q-o-Q) to Rs. 6,761.2 crore, according to Sharekhan.
Net Interest Income (NII) is expected to increase by 20.7 percent Y-o-Y (up 7.3 percent Q-o-Q) to Rs. 6,887.6 crore, according to Kotak.
CLSA said earnings for smaller private banks, like IndusInd Bank and Yes Bank, may be impacted by provisioning for stressed loans and slower growth in corporate banking fees
Elara Capital does not expect any new large corporate loan account to slip barring re-classification of IL&FS
Input cost pressure is being increasingly absorbed by companies as the demand environment in weakening
Smaller companies have had a good run in September quarter. This suggests that such stocks can give good returns even as the market volatility ensues.
The bank's Q2 earnings reinforces our belief that it is on track to deliver targeted returns by June 2020
Overall brokerage houses expect ICICI Bank to report double digit growth in advances, largely driven by retail book.
Lower slippages, improving core profitability and undemanding valuation makes the risk-reward extremely favourable for ICICI Bank
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 will be the first results announcement in absence of its CEO and Managing Director Chanda Kochhar, who is on leave pending an independent inquiry into the impropriety allegations against her
In the past few years, the bank has steadily diversified and de-risked its asset book while building an enviable liability franchise. With the stock currently trading around 1.1 times FY19e book, current valuations seems to be pricing in the concerns and offers a favourable risk reward.
The annualised premium equivalent of the life insurer rose by 17.6 percent in FY18 to Rs 7792 crore
Analysts expect loan growth at around 8-10 percent in Q3FY18 against 6.3 percent in Q2FY18.
The aggregate picture, that was quite dismal in the run up to the GST in the previous quarter, has got better. Our analysis of over 4200 companies showed tepid growth in topline, but surprisingly there was a marked improvement in margins. Finally, unlike in the previous quarter when profitability declined, there was some revival in the September quarter with the trend line flattening.
Asset quality was far better than its rivals Axis Bank and Yes Bank. The gross non-performing assets (NPA) as a percentage of gross advances came in at 7.87 percent for the quarter, lower compared with 7.99 percent in previous quarter.
In an interview to CNBC-TV18, Rajiv Mehta of IIFL Wealth shared his views and readings on ICICI Bank's Q2 numbers and also spoke about specific stocks.
Despite a 34 percent drop in net profit at Rs 2,058 crore from a year ago, the Mumbai-based bank saw its gross non-performing assets (NPAs) in the three month period July-September decreased even as it spiked from a year-ago period.
YES BANK - bad loans have surged as Q2 shows a significant divergence from the Reserve Bank of India’s (RBI) assessment to the tune of over Rs 6,300 crore. In an interview to CNBC-TV18, Siddharth Purohit of SMC Institutional Equities shared his views and outlook on the YES BANK’s Q2 numbers.
This is the second time that the RBI, in its annual risk-based supervision, has observed divergences in both the banks’ NPA reporting.
Analysts feel if slippages come below Rs 5,000 crore then that will be taken positively by the Street.