ICICI Bank net profit likely to rise around three-fold in Q41 min read . Updated: 24 Apr 2021, 10:38 AM IST
- The bank's slippages have been controlled and it has guided for normalization of credit cost from FY22,the Motilal Oswal report said
Mumbai: Private sector lender ICICI Bank is expected to post a net profit of ₹4,507.10 crore in the three months ended March, around 269% higher than ₹1221.36 crore reported in the same period last year, according to an average of estimates by five analysts polled by Bloomberg.
The bank will declare its Q4 FY21 results on Saturday.
Analysts at Motilal Oswal believe ICICI Bank is firmly positioned to deliver healthy growth, led by core operating performance. “ICICI Bank to report a 322% year on year expansion in net profit at ₹5,160 crore for the quarter compared with a net profit of ₹1,221.4 crore in the year-ago period. Sequentially, this would mean a 4.4% growth over December quarter’s profit of ₹4,939.6 crore," the report said.
The bank has substantially increased its provision coverage ratio to 86% and carries unutilized covid-related provisions of ₹6470 crore. The bank's slippages have been controlled and it has guided for normalization of credit cost from FY22,the Motilal Oswal report said.
ICICI Bank recently informed the stock exchanges that it will consider raising funds by way of issuance of debt securities, including non-convertible debentures/bonds/notes/offshore certificate of deposits in single/multiple tranches in any currency through public/private placement in the board meeting to be held on Saturday.
Analysts at Emkay Research said, “healthy loan growth, margins and continued provision claw-back should lead to healthy profitability. Underlying asset quality trends, mainly in retail, should be good. Corporate stress may include Srei exposure." Emkay Research said in a note on 7 April.
Shares of ICICI Bank closed at ₹570.05 on the BSE on Friday, down 1.57% from its previous close.
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