The private sector lender is likely to report a 19.7 per cent year-on-year growth in net profit to Rs 5,086.7 crore for the quarter ended September. The bank is expected to report a 20 per cent on-year rise in net interest income to Rs 11,227 crore for the reported quarter.
ICICI Bank will report its September quarter earnings on Saturday.
The lender’s provisions in the quarter are expected to decline on a sequential basis, although, they will increase on a year-on-year basis. Analysts suggested that the bank could dip into its COVID-19 provisions created in prior quarters to accommodate a likely increase in slippages in the quarter.
“We are building slippages of 2.1% (Rs 4,000 crore) but we see a solid commentary on recovery to normalized levels of their loan book from an asset quality perspective,” said brokerage firm Kotak Institutional Equities.
On the lending front, brokerage firm Sharekhan expects the bank to report a 20 per cent year-on-year growth in loans during the quarter. The growth is likely to be led by the company’s retail loans operations and credit cards business.
ICICI Bank’s operating performance will continue the recent strength as analysts see a 13.6-14.8 per cent year-on-year growth in pre-provision operating profit for the lender in the reported quarter. The net interest margin is also expected to remain stable at 3.8-3.9 per cent.
Besides the earnings, investors will keenly await the management’s commentary on the lending business, especially, in the backdrop of a robust economic recovery post the second wave of the pandemic.
