Net interest income is expected to be more than 12 percent year-on-year with slowing down loan growth to around 5-6 percent YoY, but deposits growth could be around 18-20 percent YoY.
The country's second largest
private sector lender, ICICI Bank, on October 31, is expected to report
significant year-on-year growth in September quarter profit due to low base in
the year-ago period. In Q2FY20, profit was affected by deferred tax assets
hit following change in corporate tax rate by the government.
Profit is likely to be in the
wide range of Rs 3,000-4,000 crore against Rs 655 crore in same period last
year. Provisions may remain elevated on year-on-year basis, but the
sequentially may decline as the bank already made high contingent provisions
for likely COVID-19 related defaults.
Net interest income is expected
to be more than 12 percent year-on-year with slowing down loan growth to around
5-6 percent YoY, but deposits growth could be around 18-20 percent YoY.
"We expect a pre-provision
operating profit (PPoP) growth of around 15 percent YoY with NII growth at 12
percent YoY partly aided by operating leverage. Loan growth to slow to around 6
percent but NIM (core) to remain stable QoQ at 3.7 percent," said Kotak
Institutional Equities which sees 547.6 percent YoY growth in Q2 profit.
"We expect provisions to
remain high but lower than the previous quarter as we don't see the bank making
the same quantum of contingent provisions as we saw in Q1FY21. We expect focus
to remain on the expected restructuring by Q4FY21," the brokerage added.
HDFC Securities also expects loan
growth to slow further to 5.7 percent YoY, and core earnings to grow at 13
percent YoY.
Incremental COVID-19 related
provisions, comments on collection efficiency, and movement in BB and
below-rated book and outlook on asset quality (including restructuring) would
be key factors to watch out for, said the brokerage.
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