ICICI Bank, YES Bank, Kotak Mahindra Bank and RBL Bank to share Q2 results on Oct 21; analyst previews
Phillip Capital expects ICICI Bank to report 34.3 per cent YoY rise in profit at Rs 10,146 crore on 27.6 per cent YoY rise in NII at Rs 18,869 crore.
- Oct 20, 2023,
- Updated Oct 21, 2023 9:44 AM IST
ICICI Bank Ltd, Kotak Mahindra Bank Ltd, YES Bank Ltd and RBL Bank Ltd are scheduled to announce their September quarter results on Saturday. Analysts largely expects the banks to report profit growth in excess of 20 per cent, with stable asset quality and margins.
ICICI Bank Q2 results preview
In the case of ICICI Bank, Shreyansh Shah, Research Analyst at StoxBox expects the bank to come out with healthy numbers, aided by solid loan book growth and robust retail franchise.
While there would be some NIM compression due to the passing of the increased cost of funds, the absolute profitability would show a double-digit growth on an annual basis, he said.
"Thus, we expect RoA to be in the range of 2.3-2.5 per cent and RoE in the range of 15-18 per cent annualised this quarter. We do not see any deterioration in the bank’s asset quality due to its strong credit profiling and high dependence on granular asset book. Due to the bank’s prudent measure, it has already provided for contingent provisions of Rs 1,050 crores in Q1FY24. Thus, there won’t be any significant increase in provisions this quarter and would help the bank to come out with robust profit growth," Shah of StoxBox said.
Phillip Capital expects ICICI Bank to report 34.3 per cent YoY rise in profit at Rs 10,146 crore on 27.6 per cent YoY rise in NII at Rs 18,869 crore.
Kotak Mahindra Bank Q2 results preview
This brokerage sees Kotak Mahindra Bank to report 24.2 per cent rise in profit at Rs 3,205 crore on 24.7 per cent rise in NII at Rs 6,358 crore. Loan growth is expected to witness sequential growth driven by mortgage and unsecured loan, it said.
Shah of StoxBox said Kotak Mahindra Bank's September quarter results would be led by healthy credit growth but expects some impact on its loan book’s agriculture segment, as monsoon was patchy. He sees NIM to moderate due to its new product ActivMoney, which offers high yields to its customers.
Kotak's loan book will see good growth in credit off-take as the demand remains robust across all retail assets, including affordable housing, CV, passenger vehicles, SME and even unsecured segments, he said.
"However, the private bank’s guidance of keeping NIM above the 5 per cent mark makes us optimistic in the current high-interest rate environment. There are no concerns over the bank’s asset quality as it has a history of being prudent in accounting for provision promptly, which has always led to healthy credit costs and stable non-performing ratios," Shah said.
YES Bank Q2 results preview
Emkay Global sees YES Bank’s profit at Rs 333.80 crore, up 118.4 per cent YoY. NII is seen falling 0.9 per cent YoY to Rs 1,974 crore. Pre-provision operating profit is seen at Rs 772 crore, down 2.3 per cent YoY. NIM is seen at 2.4 per cent against 2.5 per cent in June and 2.6 per cent in the September quarter of last year.
On a sequential basis, Emkay Global said slower growth coupled with weak margins and elevated provisions are expected to hurt profitability. It, however, expects slippages to moderate sequentially.
RBL Bank Q2 results
Centrum Broking expects RBL Bank to deliver yet quarter of consistent performance, reflecting its ongoing growth trajectory. It projects a YoY growth of 36 per cent in NII (Rs 1,450 crore) on back of strong growth in advances and low base of the corresponding period last year. Additionally, it anticipated a similar YoY increase of 37 per cent in PPoP (Rs 704 crore), driven by lower operating expenses. In terms of earnings, the bank is expected to deliver a YoY growth 53 per cent, reaching Rs 309 crore, Centrum Broking said.
Emkay Global expects RBL Bank to log 45.9 per cent YoY rise in net profit at Rs 293.80 crore on 22.2 per cent YoY rise in NII at Rs 1,300 crore. PPoP is seen rising 31.2 per cent YoY to Rs 672 crore. NIM is seen at 4.9 per cent against 4.8 per cent in June and 4.6 per cent in the same quarter last year.
"The bank is expected to deliver healthy growth, which coupled with margin uptick and contained provisions should lead to 1.0-1.1 per cent RoA. Slippages are likely to remain elevated, though flat QoQ," it said.
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ICICI Bank Ltd, Kotak Mahindra Bank Ltd, YES Bank Ltd and RBL Bank Ltd are scheduled to announce their September quarter results on Saturday. Analysts largely expects the banks to report profit growth in excess of 20 per cent, with stable asset quality and margins.
ICICI Bank Q2 results preview
In the case of ICICI Bank, Shreyansh Shah, Research Analyst at StoxBox expects the bank to come out with healthy numbers, aided by solid loan book growth and robust retail franchise.
While there would be some NIM compression due to the passing of the increased cost of funds, the absolute profitability would show a double-digit growth on an annual basis, he said.
"Thus, we expect RoA to be in the range of 2.3-2.5 per cent and RoE in the range of 15-18 per cent annualised this quarter. We do not see any deterioration in the bank’s asset quality due to its strong credit profiling and high dependence on granular asset book. Due to the bank’s prudent measure, it has already provided for contingent provisions of Rs 1,050 crores in Q1FY24. Thus, there won’t be any significant increase in provisions this quarter and would help the bank to come out with robust profit growth," Shah of StoxBox said.
Phillip Capital expects ICICI Bank to report 34.3 per cent YoY rise in profit at Rs 10,146 crore on 27.6 per cent YoY rise in NII at Rs 18,869 crore.
Kotak Mahindra Bank Q2 results preview
This brokerage sees Kotak Mahindra Bank to report 24.2 per cent rise in profit at Rs 3,205 crore on 24.7 per cent rise in NII at Rs 6,358 crore. Loan growth is expected to witness sequential growth driven by mortgage and unsecured loan, it said.
Shah of StoxBox said Kotak Mahindra Bank's September quarter results would be led by healthy credit growth but expects some impact on its loan book’s agriculture segment, as monsoon was patchy. He sees NIM to moderate due to its new product ActivMoney, which offers high yields to its customers.
Kotak's loan book will see good growth in credit off-take as the demand remains robust across all retail assets, including affordable housing, CV, passenger vehicles, SME and even unsecured segments, he said.
"However, the private bank’s guidance of keeping NIM above the 5 per cent mark makes us optimistic in the current high-interest rate environment. There are no concerns over the bank’s asset quality as it has a history of being prudent in accounting for provision promptly, which has always led to healthy credit costs and stable non-performing ratios," Shah said.
YES Bank Q2 results preview
Emkay Global sees YES Bank’s profit at Rs 333.80 crore, up 118.4 per cent YoY. NII is seen falling 0.9 per cent YoY to Rs 1,974 crore. Pre-provision operating profit is seen at Rs 772 crore, down 2.3 per cent YoY. NIM is seen at 2.4 per cent against 2.5 per cent in June and 2.6 per cent in the September quarter of last year.
On a sequential basis, Emkay Global said slower growth coupled with weak margins and elevated provisions are expected to hurt profitability. It, however, expects slippages to moderate sequentially.
RBL Bank Q2 results
Centrum Broking expects RBL Bank to deliver yet quarter of consistent performance, reflecting its ongoing growth trajectory. It projects a YoY growth of 36 per cent in NII (Rs 1,450 crore) on back of strong growth in advances and low base of the corresponding period last year. Additionally, it anticipated a similar YoY increase of 37 per cent in PPoP (Rs 704 crore), driven by lower operating expenses. In terms of earnings, the bank is expected to deliver a YoY growth 53 per cent, reaching Rs 309 crore, Centrum Broking said.
Emkay Global expects RBL Bank to log 45.9 per cent YoY rise in net profit at Rs 293.80 crore on 22.2 per cent YoY rise in NII at Rs 1,300 crore. PPoP is seen rising 31.2 per cent YoY to Rs 672 crore. NIM is seen at 4.9 per cent against 4.8 per cent in June and 4.6 per cent in the same quarter last year.
"The bank is expected to deliver healthy growth, which coupled with margin uptick and contained provisions should lead to 1.0-1.1 per cent RoA. Slippages are likely to remain elevated, though flat QoQ," it said.
Also read: Hot stocks on October 20, 2023: YES Bank, Tanla Platforms, Titagarh Rail, Dilip Buildcon, and more
Also read: MMTC shares slump 27% in 3 days; panic sell-off may continue, say analysts