ICICI Bank Q2 Results Preview: Net profit likely to rise 25% YoY; margins to remain stable

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₹2,000 currency note and an improved real rate of return, analysts said. ICICI Bank is expected to report strong net profit growth and net interest income (NII) growth during the July-September quarter of FY24, while net interest margin (NIM) is likely to remain stable. Also Read: HDFC Bank Q2 Results Highlights: Net profit at ₹15,980 crore, NII at ₹27,385 crore The bank’s slippages have moderated over the past few quarters and are likely to remain under control.

The lender is well-cushioned with higher provisions on its balance sheet and does not expect to utilize these provisions in the near term, as per analysts. “Margins have peaked out in Q4FY23 at around 4.9%, and the re-pricing of liabilities and SA deposits churning into TD would keep funding costs elevated and exert pressure on margins. With ~70% of the book being floating in nature, most of the asset re-pricing has happened, and loan yields might stagnate going further," brokerage firm Motilal Oswal Financial Services said.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The brokerage believes ICICI Bank is becoming a growth leader in the SME and Retail segments, aided by continued investments in technology and partnerships with new ecosystem players. It expects an 18% loan CAGR over FY23-25 for the bank. According to Motilal Oswal, ICICI Bank’s net profit in Q2FY24 may rise 27.8% to ₹9,660 crore from ₹7,557.8 crore in the corresponding quarter of last fiscal.

It expects NII to grow 24% to ₹18,330 crore from ₹14,786.8 crore, YoY. “Expect loan growth to remain healthy, led by Retail and SME segments. Expect credit costs to remain under control, supported by