ICICI Bank shares in focus after Q2 beats estimates; What Should be your investment strategy now?

Shares of ICICI Bank are expected to remain in focus today after the lender reported a 14.5% increase in its standalone net profit for the September quarter, reaching Rs 11,746 crore compared to Rs 10,261 crore in the same period last year.

Key Highlights of Q2FY25

The bank’s net interest income (NII) saw a year-on-year increase of 9.5%, rising to Rs 20,048 crore in Q2FY25 from Rs 18,308 crore in Q2FY24. However, the net interest margin was reported at 4.27% for Q2FY25, a slight decline from 4.36% in Q1FY25 and 4.53% in Q2FY24.

Core operating profit also showed positive growth, increasing by 12.1% YoY to Rs 16,043 crore in Q2FY25. Excluding dividend income from subsidiaries and associates, core operating profit grew by 13.4% YoY.

Deposits and Loan Growth Better than Expected

ICICI Bank reported average deposits growth of 15.6% YoY, amounting to Rs 14,28,095 crore as of September 30, 2024. The average current account and savings account (CASA) ratio stood at 38.9% for Q2FY25. The domestic loan portfolio experienced a robust growth of 15.7% YoY, reaching Rs 12,43,090 crore as of the same date.

Asset Quality and Capital Adequacy

The bank’s net NPA ratio was recorded at 0.42% as of September 30, 2024, a slight improvement from 0.43% on June 30, 2024. The provisioning coverage ratio on non-performing loans was 78.5% at the end of Q2FY25.

Also ReadNifty set for a bounce before another slide: Experts

Including profits for the six months ended September 30, 2024, ICICI Bank’s total capital adequacy ratio stood at 16.66%, with a CET-1 ratio of 15.96% on a standalone basis.

Non-Interest Income Jumps Nearly 11%

Non-interest income, excluding treasury activities, rose by 10.8% year-on-year to Rs 6,496 crore in Q2FY25, compared to Rs 5,861 crore in Q2FY24. This growth highlights the bank’s ability to enhance revenue streams beyond traditional interest income.

Additionally, fee income showed robust growth, increasing by 13.3% YoY to Rs 5,894 crore in Q2FY25, up from Rs 5,204 crore in the same quarter last year. Notably, fees from retail, rural, and business banking customers accounted for approximately 78% of total fees in Q2FY25, underscoring the bank’s strong performance in these segments.

Brokerages on ICICI Bank

Macquarie on ICICI Bank

In its latest report on ICICI Bank, Macquarie has maintained an outperform rating with a target price of Rs 1,350.

 » Read More

Related Articles

How will markets open today? Here are top 7 cues to watch ahead of trading on February 11

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 are implied to open on a higher note on Tuesday. Also, Asian markets opened majorly on a higher note in early trade hours as investors looked past the tariff threats from Donald Trump. Previously, on Monday, the NSE Nifty 50 finished the

Stocks To Watch: Reliance Ind, Grasim Ind, Bata, Titan, ONGC, IHCL, Nykaa, Lupin, Eicher Motors, Ahoka Buildcon

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a higher opening on Tuesday. Here’s a look at the key stocks to watch in trade. Stocks in Focus: Here’s a comprehensive list of stocks to keep in mind before you start your day. From Reliance Industries to Ashoka Buildcon

DIIs place big bets on 2 pharma giants. Multibaggers in the making?

By Suhel Khan As the world’s largest supplier of generic drugs, renowned for its cost-effective vaccines and generic medicines, India plays a very important role in global medicine. The Indian pharmaceutical industry has transformed into a flourishing sector, currently ranking third globally in terms of production volume and 14th in terms of value. Over the

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

How will markets open today? Here are top 7 cues to watch ahead of trading on February 11

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 are implied to open on a higher note on Tuesday. Also, Asian markets opened majorly on a higher note in early trade hours as investors looked past the tariff threats from Donald Trump. Previously, on Monday, the NSE Nifty 50 finished the

Stocks To Watch: Reliance Ind, Grasim Ind, Bata, Titan, ONGC, IHCL, Nykaa, Lupin, Eicher Motors, Ahoka Buildcon

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a higher opening on Tuesday. Here’s a look at the key stocks to watch in trade. Stocks in Focus: Here’s a comprehensive list of stocks to keep in mind before you start your day. From Reliance Industries to Ashoka Buildcon

DIIs place big bets on 2 pharma giants. Multibaggers in the making?

By Suhel Khan As the world’s largest supplier of generic drugs, renowned for its cost-effective vaccines and generic medicines, India plays a very important role in global medicine. The Indian pharmaceutical industry has transformed into a flourishing sector, currently ranking third globally in terms of production volume and 14th in terms of value. Over the

Rupee fall hurts India Inc hard

The rupee inched closer to the 88-mark against the US dollar on Monday, putting companies in import-sensitive sectors on the edge. While firms fear a surge in imported inflation on account of rupee depreciation, consumer electronics companies, for instance, are taking price hikes to protect margins. In sectors such as thermal power, where the cost

Bata India Q3 profit grows marginally to Rs 58.6 crore on weak demand

Footwear major Bata India on Monday reported a marginal 1% growth in its net profit at Rs 58.6 crore during the October-December quarter, as compared to Rs 57.9 crore in the same quarter in 2023-24. Bloomberg consensus estimates had pegged the net profit during the quarter at Rs 72 crore.  The company’s revenue from operations