ICICI Bank shares jumped 5% and hit their 52-week high of Rs 1,059.40 on the NSE on Tuesday after the second-largest private lender reported December quarter earnings which were better than Street s estimates. Top brokerages including Jefferies, Kotak Institutional Equities and Nuvama retained their buy rating on the stocks. ICICI Bank on Saturday reported a 23.6% year-on-year (YoY) growth in its profit after tax to Rs 10,272 crore for the quarter ended December 2023.
The stock of ICICI Bank hit a record high on Tuesday notwithstanding the weakness in the broader market following the bank’s stellar performance in the December quarter.
Q3 results today: 40 companies announcing their quarterly earnings. ICICI Bank and Kotak Mahindra Bank are among the most tracked after results. Other important results include IDBI Bank, IDFC First Bank, IREDA, J&K Bank, JK Cement, Persistent Systems, and Union Bank.
ICICI Bank is expected to report a 20% YoY growth in net profit at Rs 9,984 crore, and net interest income (NII) of Rs 18,474.30 crore for the December quarter. The bank s earnings are likely to be aided by a higher than industry growth in the loan book, lower credit costs, and steady asset quality. The loan book is expected to grow by 18.4% YoY, with healthy momentum in the retail and SME segments. Deposits are expected to grow by 19.2% YoY, with CASA at 40.9% as of December end. NIMs may experience a compression of 10 bps QoQ.