ICICI has done well on NII front, loan growth in line with expectations: Nitin Kumar, Quant Broking

In a chat with ET Now, Nitin Kumar, Research Analyst, Quant Broking Pvt Ltd, shares his views on ICICI Bank’s Q3 performance. Excerpts:

ET Now: What are your initial thoughts on ICICI Bank numbers?

Nitin Kumar: Overall, ICICI has done well on the NII front. Even the loan growth is in line. The bank has been guiding 16% to 18% loan growth and if I look at 9 months’ validity, they have done close to 16%. The net interest income was a tad better than what we estimated. We were at Rs 4217 crore, ICICI is close to Rs 4250 crore. They have done better and that shows up in their margins, which have improved sequentially.

However, on the asset quality issue, there seems to be some pain that has come up in this quarter. Apparently, it looks like that the bank has done GNPL write-offs this quarter as a result of which gross NPLs have gone up by 4% on a sequential basis, while the net NPAs have gone up by 15%.