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Synopsis: ICICI Bank is expected to report moderate growth in Q2 FY25, with net profit ranging between Rs10,930 crore and Rs11,437 crore and NII anticipated to rise by 8%-11%. Asset quality shows improvement, though NIMs may slightly decline due to funding pressures. Loan and deposit growth remain robust, driven by retail and SME segments.
ICICI Bank is set to release its Q2 FY25 financial results, with analysts expecting moderate growth. The bank's net profit is projected to range from Rs10,930 crore to Rs11,437 crore, reflecting an increase of about 7%-11% YoY. Net Interest Income (NII) is anticipated to rise by 8%-11%, reaching between Rs19,804 crore and Rs20,292 crore. Analysts forecast a slight drop in Net Interest Margins (NIMs) to 4.4% due to rising funding costs. Additionally, loan growth is expected to see a 14% YoY increase, driven by retail and SME sectors.
Deposit and Loan Growth
Deposits are projected to grow in alignment with loans, reaching Rs14.8 lakh crore, a 14.6% YoY rise. Loan advances are expected to touch Rs12.7 lakh crore, indicating robust credit growth. Analysts have noted slight moderation in margins, primarily due to increased funding costs, but stability is anticipated sequentially.
Asset Quality
ICICI Bank's asset quality is expected to improve slightly, with gross non-performing assets (GNPA) likely to drop to 2.3% from 2.5% YoY. However, net NPAs could see a minor increase to 0.5% from 0.4%.
Analysts' Projections
According to JM Financial, ICICI Bank's NII could reach Rs20,292 crore, up 10.8% YoY, with a net profit estimate of Rs11,437 crore, a 3.4% QoQ rise. Sharekhan expects a lower net profit of Rs10,978 crore. Pre-Provision Operating Profit (PPoP) is predicted to be Rs16,970 crore, marking a YoY increase of around 19.3%.
Q1 FY25 Performance Recap
In the previous quarter, ICICI Bank recorded a net profit of Rs11,059 crore, a 14.6% YoY increase. The bank's NII rose by 7.3%, while its NIM decreased slightly to 4.36%, reflecting challenges in sustaining margin levels due to rising funding costs.
Disclaimer: The projections are based on analyst estimates and past performance data. Actual results may vary. Investors are advised to consult financial experts before making investment decisions.
