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.
In an interview to CNBC-TV18, Manish Agarwalla, Co-Head of Research at PhillipCapital shared his views on readings of quarterly earnings from banking sector.
ICICI Bank will be reporting its Q1 FY18 earnings this evening. In an interview to CNBC-TV18, Kunal Shah of Edelweiss Financial Services spoke about his expectations.
Analysts expect degrowth in profitability but growth in net interest income for the quarter.
Vishal Goyal, Executive Director-Leading Banks and Financial Research at UBS India shared his outlook on what could unfold in the Q1 results for the banking universe.
Provisions may witness a slight uptick after the RBI's diktat in June. Positive trends on asset quality will, however, continue with the pace of slippages into NPAs declining for all banks.
ICICI Bank is well capitalised and the strong franchise should be able to ramp up once the bad loan mess is behind it. We expect the bank to see a much better FY19, post a consolidation/resolution year of FY18. After adjusting for the bad assets and value of subsidiaries, the stock quotes at a reasonable valuation of 1.9x FY17 adjusted book.
After fourth quarter earnings, global brokerage houses (barring JP Morgan) expect the stock to give 17-38 percent return over 12-month.
In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Darpin Shah of HDFC Securities shared his reading and expectations for Q4 results of ICICI Bank. He expects slippages to be roughly around Rs 7,200 crore.
Analysts expect slippages to remain on the higher end between Rs 6,500-7,000 crore.
ecoding the numbers both Rajiv Mehta of IILF and Siddharth Purohit of Angel Broking were not shocked with the rise in gross non-performing loans but would look forward to management commentary on resolution of NPAs
Analysts expect slippages to remain on the higher end between Rs 7,000-8,000 crore (against Rs 8,029 crore in Q2). Hence, slippages from restructured book and movement of stressed assets (sale to asset reconstruction companies, addition to S4A, 5/25 & SDR) will be closely seen.
HDFC Bank profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. Net interest income increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.