ICICI Bank Reports Q2 Today After Strong Q1

ICICI Bank announces September quarter results today, Saturday, after its shares closed at Rs 1,397 on Friday, up 0.55%, with investors watching whether the lender can sustain growth that has outpaced much of the sector. The June quarter sets a high bar. Standalone net profit rose 16% to Rs 14,804 crore, net interest income grew 6.3% to Rs 45,670 crore, and net interest margin held at about 4.4%. On-book advances grew 20% year on year, while deposits rose 14%, with term deposits up 17%. Asset quality also improved, with gross NPA falling to 1.38% from 1.67% a year earlier, net NPA at 0.4% and provisions down 30.5% to Rs 1,260 crore. Return on equity stood at 17%. Loan growth of around 20% is well ahead of deposit growth of 14%, so funding and margins are the key watchpoints. A stable margin around 4.4% would show the bank can keep growing without giving up profitability, while any compression could dent earnings. Falling slippages and provisions helped profit last quarter, so investors will also check whether asset quality gains hold. The stock has ranged between Rs 1,187.60 and Rs 1,480 over the past 52 weeks, with a market cap of around Rs 10.03 lakh crore, still below its yearly high. Today’s numbers will show whether growth, margins and asset quality are moving together. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in ICICI Bank. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.