ICICI Bank Q3FY22 Preview: NII seen at Rs121.3 billion, PAT at Rs59.3 billion

21 Jan 2022 , 03:35 PM

Result date: 22nd January, 2022
Recommendation: BUY
Target price: Rs940
(Source: Company, IIFL Research)

ICICI Bank‘s net interest income (NII) could grow 22% on a YoY basis on the back of 14-15% YoY loan growth. Loan growth is likely to be lower due to the high base of Q3FY21.

ICICI Bank is likely to post PAT of Rs59.3 billion, with a YoY growth of 20% and a sequential growth of 8%.  Declining credit costs both on a YoY and QoQ basis will aid the bank’s profits. Asset quality should remain stable. Slippages could moderate sequentially from ~Rs56bn in 2QFY22, leading to a lower GNPA ratio.

Margins are likely to remain in a narrow band of ~3.9-4.0%.

Important management insights to watch out for:

* Impact of the 3rd COVID wave on asset quality

* Trends in credit demand across key segments

Rs. Billion	December 2021 estimates	YoY Change (%)	QoQ Change (%)
NII	121.3	22	4
PPP	101.6	15	2
PBT	77.6	28	8
PAT	59.3	20	8
Total Income	169.4	16	3

Source: Company, IIFL Research