ICICI Bank Q1 preview: Profit may jump 40%, NIM may expand QoQ

is likely to report nearly 40 per cent rise in year-on-year (YoY) net profit on a 20 per cent jump in net interest income (NII). Net interest margin (NIM) may see a marginal rise, a few brokerages anticipate.

Brokerage Sharekhan expects ICICI bank to report a 39.80 per cent YoY rise in net profit at Rs 6,810 crore compared with Rs 4,871 crore in the same quarter last year. NII was seen rising 20 per cent YoY to Rs 13,119 crore from Rs 10,936 crore in the same quarter last year. According to the brokerage, advances are likely to be aided by retail and

SME portfolio, also, adding movement of the restructured book will be a key monitorable.

Emkay Global saw ICICI Bank’s profit at Rs 6,474 crore, up 40.3 per cent YoY. NII is expected to rise 20.6 per cent YoY to Rs 13,192.70 crore. The brokerage expects NIM at 4.1 per cent from four per cent in March quarter and 3.9 per cent in the year-ago quarter. According to Emkay, better growth, including mortgages and unsecured loans, to drive up margins, will lead to healthy core profitability. Also, slippages may moderate sequentially with retail stress receding.

said that there was no drop in housing loan volumes even after a hike of 90 bps in lending rates.

“NIM will likely expand from Q2. There is a very marginal positive impact of rising rates on NIM in Q1. Repo reset is after three months. Pricing of corporate loans is less competitive compared to Q4 FY22, but it is not fully normalised. Market-to-market losses will be negligible given short duration and a small corporate bond book. However, trading gains would also be negligible,” the brokerage said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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