Private sector lender ICICI Bank is expected to report healthy growth in Q4FY20 profit due to low base of Q4FY19 and lower provisions.
Brokerages expect profit growth in the range of 100-300 percent YoY.
Net interest income (NII) is expected to increase by 15 percent with around 12 percent loan growth year-on-year (YoY) - led by retail segment, while pre-provision operating profit (PPoP) is likely to increase by around 20-25 percent YoY in quarter ended March 2020.
"NII is expected to grow by 15 percent YoY on the back of improving NIM and stable advance growth," said Narnolia Financial Services, which expects profit growth of 234 percent YoY.
"We expect a PPoP growth of around 20 percent YoY led by loan growth of around 12 percent YoY and stable NII growth (16 percent YoY)," said Kotak Institutional Equities which sees profit growth of 344 percent YoY with 65.5 percent YoY decline (down 9.8 percent QoQ) in provisions.
ICICI Bank's asset quality is also expected to improve in the March quarter on account of write-offs.
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"The pace of reduction in gross non-performing assets (NPAs) is expected to continue, with write-offs and contained slippages. Credit costs are likely to remain stable QoQ basis," Sharekhan said.
Kotak also expects reduction in gross NPLs on the back of write-offs and slippages at around 1.8 percent levels (mostly retail). "We await to see if the bank would make higher provisions for the lockdown."
Management commentary on asset quality and lockdown impact will be keenly monitored.
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