ICICI Bank net profit seen up 24% YoY; NII likely to improve

NEW DELHI: ICICI Bank Ltd is slated to declare its quarterly results for the quarter ended September 30 on Friday. India’s largest private sector bank is expected to report a 24.3 per cent YoY rise in its second quarter net profit to Rs 1869 crore from Rs 1503.20 crore reported in the year-ago period, according to ET NOW Poll.

Net interest income or the difference between interest earned and interest paid is likely to rise by 29.4 per cent on year-on-year basis. Net interest income is expected to have grown to Rs 3242.40 crore, up 29.40 per cent, against Rs 2506.40 crore (y-o-y). However, net interest margins (NIMs) are likely to decline QOQ, while improve on YOY basis.

Pre provision profit (PPP) or profits before deducting any provisions is likely to rise by 29 per cent on year-on-year basis. PPP is expected to have grown to Rs 3037.30 crore, up 29 per cent, against Rs 2353.80 crore (y-o-y).

According to the ET Now Poll, the fee income for the private sector bank is likely to be subdued. But expects trading profits for the quarter ended September 30.

Corporate and retail book are likely to register a healthy growth in this quarter. Loan growth is likely to remain healthy at 17-18 per cent YoY.

Five factors to watch out for:

Margin trends

Fee income growth trends

CASA trends (1QFY13 CASA ratio at 40.6%, average CASA ratio at 39.1%

Asset quality

Management guidance on overall growth and credit mix