Q2FY24 Preview ICICI Bank: NII seen at Rs. 184,645 million, PAT at Rs. 97,055 million

20 Oct 2023 , 09:45 AM

Result date: October 21, 2023

Recommendation: Add

Target price: Rs. 1,080

(Source: IIFL Research)

Strong growth in retail and SME loans could lead to healthy growth in overall loan book of ICICI Bank for the September 2023 quarter. The Bank’s Net Interest Income (NII) could grow by 25% over the year-ago quarter. Fee income could also witness good momentum.

Net Interest Margin (NIM), though could decline amid rising cost of funds. This could have some impact on Pre-Provisioning Operating Profit (PPOP), which could grow by about 22% over the year-ago quarter. Credit costs are likely to remain under control owing to healthy contingency buffers. 

Profit After Tax or PAT could grow 28% over the year-ago quarter.

Important management insights to watch out for:

• Outlook on growth in credit offtake, deposits
• Trajectory of operating expenses, NIMs

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	184,645	24.9%	1.3%
PPOP	142,026	21.6%	0.4%
Profit After Tax	97,055	28.4%	0.6%

Source: Brokerage Reports