Q3FY24 Preview: ICICI Bank: NII seen at Rs. 183,286 million, PAT at Rs. 98,984 million

18 Jan 2024 , 01:23 AM

Result date: January 20, 2023

Recommendation: Add

Target price: Rs. 1,070

(Source: IIFL Research)

ICICI Bank could post healthy 18%-19% growth in advances as compared to the year-ago quarter. Continued traction in both retail and SME segments will drive the momentum in advances. Growth in deposits is pegged at around 19%. Fee income could also grow at a good pace. The Bank’s Net Interest Income (NII) could grow by about 11% versus the year-ago quarter.

Healthy topline, coupled with stable costs could aid the Bank’s Pre-Provisioning Operating Profit during the quarter. Net Interest Margin though could witness slight compression sequentially owing to increasing cost of deposits. Credit costs are expected to remain benign amid solid asset quality.

ICICI Bank’s Profit After Tax or PAT could grow by about 19% over the year-ago quarter.

Important management insights to watch out for:

• Prevailing trends in home loans, capex cycle
• Demand trends across segments and markets
• Growth in unsecured loans
• Outlook on Net Interest Margin

Rs. Million	December 2023 estimates	QoQ change	YoY change
Net Interest Income	183,286	0.10%	11.33%
Profit After Tax	98,984	(3.57)%	19.10%

Source: Brokerage reports