ICICI Bank is set to announce its financial results for the October-December quarter (Q3FY25) on Saturday, January 25. Analysts expect the bank to report a healthy rise in profit on the back of strong loan growth and stable asset quality.
According to a CNBC-TV18 poll, ICICI Bank’s profit after tax (PAT) is expected to rise 10.3% to reach ₹11,332.7 crore compared to ₹10,271.6 crore in the same period last year.
Meanwhile, the bank’s net interest income (NII) is estimated to reach ₹20,461.4 crore from ₹18,678.6 crore in Q3FY24.
The bank’s asset quality is likely to remain stable. Brokerage firm Motilal Oswal estimates the gross non-performing assets (GNPA) ratio to be around 2%, slightly higher than the 1.97% reported in the July-September quarter (Q2FY25). However, provisions are expected to increase on a quarter-on-quarter basis.
Kotak Securities estimates the bank’s net interest margin (NIM) to decline by 27 basis points (bps) year-on-year and 10 bps sequentially. On the bright side, the bank’s cost of credit is expected to decline by 53 bps year-on-year and 13 bps quarter-on-quarter.
Motilal Oswal estimates strong growth in ICICI Bank’s deposit and loan portfolio. Deposits are expected to grow 17.5% year-on-year, while loans are expected to grow 15.05% during the same period.
Market participants will closely monitor management comments for insights on the bank’s outlook on business momentum, loan growth and asset quality. On Friday, January 24, ICICI Bank shares closed 0.62% higher at ₹1,209.20 per share. The bank currently has a market capitalization of ₹8,53,768 crore and has delivered a return of around 21% in the last one year.