ICICI Bank stock rallies over 5 per cent intra-day on good Q4FY21 numbers
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Benign slippages, strong growth in retail loans and sharp spike in earnings helped boost investor sentiment
Following its strong performance in the fourth quarter, the stock of ICICI Bank rallied more than 5 per cent intraday today. Benign slippages, strong growth in retail loans and a sharp spike in earnings (spiked more than two-fold year-on-year due to higher provisioning in the March 2020 quarter), all helped boost investor sentiment around the stock.
The bank’s gross non-performing assets declined from 5.53 per cent in FY20 to 4.96 per cent at the end of FY21. ICICI Bank achieved this by reducing its exposure to overseas corporate loans (share brought down to 10 per cent of overall portfolio from 14.2 per cent at the end of FY20) and by steadily growing its retail assets (low concentration risk). About 55 per cent of the bank’s loan portfolio now comprises retail loans. Given the bank’s aggr
ICICI Bank Q4 profit surges 260% to ₹4,402 crore
April 24, 2021
Net interest income rises 17% to ₹10,431 crore
Private sector lender ICICI Bank’s standalone net profit more than doubled by 260.4 per cent to ₹4,402.61 crore in the quarter ended March 31, 2021 with a robust increase in net interest income.
Its standalone net profit was ₹1,221.36 crore in the fourth quarter of 2019-20.
On a standalone basis, ICICI Bank’s net profit grew 104 per cent to ₹16,193 crore in 2020-21 from ₹7,931 crore in 2019-20.
For the quarter ended March 31, 2021, the bank’s net interest income increased by 17 per cent to ₹10,431 crore from ₹8,927 crore in the same period a year ago.
ICICI Bank Q4 preview: Lower provisions may lift profit by multifolds; stable NIM likely
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Kotak Securities expects ICICI Bank s profit to grow 313.50 per cent to Rs 5,050 crore from Rs 1,221.40 crore in the year-ago quarter.
Axis Securities estimates that ICICI Bank s profit will surge 315 per cent to Rs 5,069 crore, as it sees provisions falling 64.2 per cent YoY to Rs 2,139 crore.
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NEW DELHI:
ICICI Bank is all set to report a multifold jump in net profit for March quarter, but the quantum would vary on the level of provision the private lender makes. Analysts are forecasting a 220-320 per cent surge in profit so far as they see provisions for the quarter falling by at least 50 per cent on YoY basis. They see stability in asset quality and net interest margin (NIMs) and a double digit growth in net interest income (NII).
Shares of ICICI Bank rallied 6 per cent to hit a record high of Rs 568 on the BSE in intra-day trade on Monday after reporting strong December quarter (Q3FY21) results, with net profit increasing 19 per cent at Rs 4,940 crore, on steady revenue growth. The private sector lender had posted a net profit of Rs 4,146 crore in the quarter ended December 2019 (Q3FY20). The stock surpassed its previous high of Rs 561, touched on January 13, 2021.
The bank’s net Interest Income (NII) in the reporting quarter rose by 16 per cent at Rs 9,912 crore from Rs 8,545 crore in Q3FY20. Net Interest Margin for the reporting quarter declined to 3.67 per cent from 3.77 per cent in the year-ago quarter.
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