ICICI Bank Q4 results preview: Experts see rise in PAT, NII; contraction in NIMs

ICICI Bank Q4 results 2024 preview

Speaking connected ICICI Bank's Q4 results preview for FY24, Shreyansh V Shah, Research Analyst astatine StoxBox said, "ICICI Bank is apt to station mid-teen yearly maturation successful nett net successful the 4th quarter, driven by steadfast indebtedness publication growth, particularly successful retail and SME segments. The NIIs are besides anticipated to amusement mid-single-digit maturation on with traction successful PPOP. We expect the plus prime to beryllium stable, with little sequential recognition costs connected the backmost of reversal of AIF provisions."

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"The situation of garnering low-cost deposits is apt to beryllium disposable connected NIMs which should compress marginally this quarter. We volition intimately show absorption comments connected the NIM outlook, their strategy for deposit mobilization, outlook connected the unsecured indebtedness book, anticipated recognition costs, and subdivision enlargement strategy," the StoxBox adept added.

Highlighting the cardinal interest areas successful ICICI Bank's Q4 results 2024, Kotak Securities said, "Key interest would beryllium the advancement of NIM arsenic the outgo of funds is yet to peak, particularly with slower CASA growth. Deposit mobilization is apt to beryllium different cardinal country of discussion."

On cardinal concern areas of the ICICI Bank that volition beryllium successful focus, Equirus Securities said, "Key things to look for volition beryllium comments connected trends successful lodging indebtedness concern arsenic good arsenic Capex cycle, expected growth, and trends successful retail non-performing assets (NPAs)."

Advising banal marketplace investors to person a realistic attack portion assessing the Q4 results of ICICI Bank, Prabhudas Lilladher said, "Banks nether our sum are expected to witnesser a anemic quarter, arsenic halfway net could autumn by 4.6% QoQ to Rs483bn (vs +1.1% QoQ successful Q3’24), chiefly driven by simplification successful NIM. Loan maturation mightiness travel successful astatine 4% QoQ (4.3% successful Q3FY24), portion deposit accretion could beryllium +5.3% QoQ (1.9% past quarter). LDR whitethorn autumn by 1% QoQ to 86% chiefly led by HDFCB. NIM contraction would summation this 4th (vs Q3FY24) and we expect NIM to diminution by 10bps QoQ (-2bps successful Q3’24) to 3.55%."

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"IIB, CUB, and DCB whitethorn spot amended NIM performance. Owing to seasonality successful the lawsuit of PSU banks, fees for could turn by 9.7% QoQ to Rs360bn which would beryllium offset by higher opex astatine Rs918bn (+10.5% QoQ). Core PPoP whitethorn travel successful astatine Rs720bn (-4.4% QoQ). AXSB, ICICIB, and HDFCB mightiness bash amended connected halfway PPoP. The gross slippage ratio mightiness spot a diminution of 9bps QoQ arsenic ample banks had witnessed an summation successful agri slippages successful Q3’24. Banks’ PAT is expected to diminution by 6.1% QoQ to Rs534bn. Among our sum universe, we similar AXSB and HDFCB," Prabhudas Lilladher's study added.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 27 Apr 2024, 09:21 AM IST