ICICI Bank Q4 Preview: NII Growth Seen Healthy, PAT May Post Double-digit Growth On Higher Margins

According to brokerages, ICICI Bank's net profit is could rise by double-digits, while the net interest income, the difference between interest earned and interest expended, is seen rising by more than 40 per cent.

Brokerage firm Prabhudas Lilladher expects ICICI Bank to report net profit at ₹9,240.9 crore, up 31.7 per cent year-on-year. Net Interest Income (NII) is expected to increase by 41.5 per cent Y-o-Y  to ₹17,958 crore. Pre Provision Operating Profit (PPOP) is likely to rise by 40.1 percent Y-o-Y to ₹14,421.2 crore.

“Higher share of EBLR linked loans and superior deposit franchise (longer maturity) to result in higher NIM expansion vs private peers of 15bps QoQ. Hence, core PPoP may see higher growth of 8.5% QoQ to Rs144bn. Maintain BUY with TP at Rs1,090," noted brokerage Prabhudas Liladhar.

While, brokerage firm Emkay Global noted that better growth and asset re-pricing should keep ICICI Bank’s margins in the healthy zone, thereby supporting core profitability. With stronger provision cover, including contingent, we expect the bank to accelerate write-offs.

It expects ICICI Bank to report net profit at ₹8,765.6 crore, up 24.9 per cent year-on-year . Net Interest Income (NII) is expected to increase by 34.1 per cent Y-o-Y to ₹16,906 crore. Pre Provision Operating Profit (PPOP) is likely to rise by 36.2 percent Y-o-Y  to ₹14,014.8 crore.

BNP Paribas expects PAT to surge 33 per cent YoY to ₹9,342.7 crore while NII, and pre-provision operating profit (PPoP), to be over 25 per cent growth to ₹16,284.4 crore and 13,020.2 crore. 

Brokerage firm Sharekhan expects NII to 36 per cent YoY to ₹17,166 crore on the back of 18 per cent YoY improvement in loan book.

This would also boost PPoP by 36 per cent YoY to ₹14,039 crore, along with sequential improvement in net interest margin. PAT is pegged at ₹9,074 crore.

ICICI Bank shares rose 18.31 per cent in the last tweleve month. In 2023, the stock declined by 2.08 per cent.

On Friday, the scrip closed 1.13 per cent down at ₹884.20 on BSE.