ICICI Bank, one of India’s leading private sector banks, is set to announce its financial results for the second quarter of FY25 on October 26, 2024. Analysts and investors are keenly awaiting this report, which is expected to reflect the bank’s robust performance amid a favorable economic environment.
Anticipated Financial Performance
According to estimates, ICICI Bank is projected to report a net profit of approximately ₹11,106 crore, marking an 8.2% increase from ₹10,261 crore in the same quarter of the previous fiscal year. This growth is attributed to healthy loan and deposit growth, stable asset quality, and controlled credit costs. Additionally, the Net Interest Income (NII) is expected to rise by around 9.6%, reaching ₹20,071 crore, up from ₹18,308 crore year-on-year.
Net Interest Margin and Operating Profit
While the bank’s Net Interest Margin (NIM) is anticipated to contract slightly due to rising deposit costs, it is expected to remain stable on a sequential basis. Analysts predict NIMs to be around 4.4% in Q2FY25 compared to 4.5% in Q2FY24. The Pre-Provisions Operating Profit (PPOP) is also projected to grow by 13.7%, reaching ₹16,180 crore, supported by healthy fee income and stable cost ratios.
Loan and Deposit Growth
ICICI Bank’s credit growth for the September quarter is estimated at around 13% – 14% year-on-year, driven by contributions from various segments despite a slowdown in unsecured loans. The bank’s deposit growth is expected to align closely with credit growth, maintaining a stable credit-to-deposit ratio.
Asset Quality Outlook
The asset quality of ICICI Bank appears stable, with analysts estimating a Gross Non-Performing Assets (GNPA) ratio of approximately 2.3% at the end of the September quarter, slightly up from 2.2% in the previous quarter. The Net NPA ratio is projected to be around 0.5%, reflecting minimal stress on asset quality.
Stock Performance and Market Sentiment
ICICI Bank’s stock has shown decent performance this year, appreciating more than 25% year-to-date and over 36% in the past year. As of 3:00 PM on October 26, ICICI Bank shares were trading at ₹1,253.35, reflecting a marginal increase of 0.06%.
Conclusion
As ICICI Bank prepares to release its Q2 results, stakeholders are eager for insights into its financial health and future outlook. The anticipated growth in net profit and NII suggests a strong operational performance that could bolster investor confidence. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and do not reflect those of Mint or its affiliates. We advise investors to consult certified experts before making any investment decisions.
