ICICI Bank share price gained over 2% in early trade today after the private sector lender reported an over two-fold jump (158%) in Q3 standalone net profit to Rs 4,146.46 crore compared to the net profit of Rs 1,604.91 crore in the October-December period a year ago. Rs 4,146 crore is the highest ever quarterly profit reported by the bank.
Share price of ICICI Bank trades 2.53% away from its 52 week high of Rs 552.4 hit on December 30, 2019. The stock touched its 52-week low of Rs 336.25 on February 14, 2019. The large cap stock has risen 51% during the last one year.
ICICI Bank stock has risen 3% in last three days. 44 of 46 brokerages rate the stock "buy" or 'outperform'and two "hold", according to analysts' recommendations tracked by Reuters.
Brokerage JP Morgan has raised its target price to Rs 650 and said operating profit of bank was strong in Q3. Recoveries for the lender have improved. However, rise in slippages and proved to be headwinds for asset quality. Total income rose 17.23 per cent to Rs 23,638.26 crore during the quarter under review as compared to Rs 20,163.25 crore in the corresponding period a year ago.
Gross non-performing assets (NPAs) fell to 5.95 per cent of gross loans at December-end 2019, compared to 7.75 per cent a year ago.
"Net interest margin was 3.77 per cent in Q3, FY2020 compared to 3.64 per cent in the quarter ended September 30, 2018 (Q2, FY2020) and 3.40 per cent in Q3, FY2019," ICICI Bank said.
Net NPAs declined to 1.49 per cent of total advances in Q3 as against 2.58 per cent for quarter ended December 2018. "Provisions (excluding taxes) declined by 51 per cent year-on-year to Rs 2,083 crore in Q3 FY2020 from Rs 4,244 crore in Q3 FY2019," the lender said.
By Aseem Thapliyal