Share of private sector lender ICICI Bank was trading lower ahead of its Q4 earnings set to be announced on April 24. The large cap stock fell to intraday low of Rs 567.15, down 2.07% on BSE. ICICI Bank share trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages. The share has gained 61.05% in one year and risen 6.25% since the beginning of this year.
Net profit of the bank is likely to surge around 300 percent on a YoY basis in Q4, brokerages said in their preview reports.
Profit after tax (PAT) is seen climbing 322 percent YoY to Rs 5,160 crore in Q4 against a PAT of Rs 1,221.4 crore in the year-ago period (Q4FY20), Motilal Oswal (MOSL) said. The brokerage expects loan growth to rise and margin to remain stable around 3.7 percent. Credit cost will remain high and slippages would be the key, added MOSL. It sees operating profit at Rs 9,420 crore, up over 27 percent YoY.
Edelweiss Securities expects the lender's profit zooming 278 percent to Rs 4,618.7 crore.
Prabhudas Lilladher expects net profit to come at Rs 4,946.6 crore, up 305 percent year-on-year. Net Interest Income (NII) is seen rising by 15.4 percent YoY to Rs 10,297.2 crore, according to the brokerage. Pre Provision Profit (PPP) may rise 16.7 percent YoY to Rs 8,627.3 crore, it said.
"We expect provisions to slide down to normalised levels and the bank is likely to use some of the Covid-19 provisions earlier this quarter. We are building slippages of 4 percent but we see a solid commentary on recovery to normalised levels of their loan book from an asset quality perspective," Kotak Securities said.
According to Axis Securities, PAT is expected to rise 315 percent to Rs 5,069 crore from Rs 1,221 crore in the year-ago quarter. The lender's overall business growth will be aided by digital push and the loan growth will be led by housing and auto loans, it said.