Q3FY23 Preview: ICICI Bank: NII seen at Rs 153.4 billion; PAT at Rs 80.2 billion

19 Jan 2023 , 12:18 PM

Result Date: 21^st January, 2023

Recommendation: BUY

Target Price: Rs1,140

Analysts at IIFL Capital Services expect loan growth of ICICI Bank in December quarter will be healthy, at 5% Quarter-on-Quarter (Q-o-Q) and 21% Year-on-Year (Y-o-Y). Deposits could grow 12% YoY and 5% sequentially. Net Interest Income (NII) is forecasted to increase Y-o-Y by 25%. Total Income is expected to increase Y-o-Y by 20%.

Margins are expected to increase on Q-o-Q basis. Margin in September Quarter of FY 23 stood at 4.3%.  Asset quality is likely to improve. Slippage ratio is forecasted to remain at 2.5%. Credit costs are likely to remain benign sequentially amid flattish provisions. Profit After Tax (PAT) is forecasted to increase Y-o-Y by 29%.

Important management insights to watch out for:

• Credit offtake across retail and commercial segments
• Trends seen in asset quality and slippage ratio
• Outlook on margins

	December quarter estimate	Y-o-Y	Q-o-Q
NII (Rs bn)	153.4	25%	4%
Total Income	207.1	20%	4%
PPOP	123.0	21%	5%
Provisions	16.5	-18%	0%
PAT	80.2	29%	6%
Source: IIFL Research