Mumbai: Shares of ICICI Bank Ltd on Friday jumped as much as 5.3%—its maximum gain in three months—ahead of its December-quarter earnings on 31 January.
The stock closed 4.74% higher, or 12.30 points up, at Rs272.05 a share, while the benchmark Sensex ended the day at 27,882.46 points—up 0.63%, or 174.32 points.
According to 20 Bloomberg analyst estimates, ICICI Bank may report net profit of Rs2,201 crore.
“We expect moderate loan growth of 12-13% on year on year basis to continue. Retail loan growth has picked up over the last two years and is expected to remain a key driver of loan growth. Moderate growth, coupled with a year on year decline in NIMs (due to a higher share of non-interest earning assets), should lead to broadly flat net interest income on year basis. On a quarterly basis, we expect net interest margins to remain stable, led by a fall in cost of funds,” said Motilal Oswal Securities in its October review report.
“We have factored in 5% year on year growth in fees income, led by moderate corporate loan growth. Gross slippages are expected to remain high in the second quarter as well,” the report added.
Key things to be watched in the earnings are movement of watch list account, plans on monetization of stake in various ventures, outlook on asset quality and quantum of loans rescheduled under the 5/25 scheme.