ICICI Bank Q3 results: How are shares likely to open next week post results?
banking sector, contributing to a decline in shares of a competitor in recent days, Bloomberg reported. The shares of ICICI Bank closed 2.55% higher at ₹1,011 per piece on January 20, against previous close at ₹986.35 on January 19. The stock has gained nearly 1.45% in the last six months and 16.04% in the last one year.
The net interest margins, a key indicator of the earnings on each loan sold, contracted to 4.43 percent in the three months ending December 31, down from 4.53 percent in the previous quarter. Also Read | ICICI Bank management on Q3 earnings performance Indian banks are grappling with challenges to their profitability, stemming from difficulties in mobilizing low-cost deposits to meet the robust demand for credit. Despite the margin contraction, ICICI Bank reported a net income increase of around 24 percent, reaching 102.7 billion rupees ($1.2 billion).
This exceeded the average estimate of 99 billion rupees in a Bloomberg survey. Also Read | ICICI Bank Q3 earnings: Consolidated net profit jumps 25.7% to ₹11,052.60 crore While Indian banks have experienced a surge in earnings due to heightened credit demand, the nation's regulator is cautioning against potential risks building up in the economy. With unsecured lending growing at almost double the rate of overall credit, the Reserve Bank of India (RBI) urged banks in November to enhance buffers for certain consumer loans.
In response to ICICI Bank's report, shares of HDFC Bank, the country's largest private-sector lender, recorded the most significant decline in over three years on January 17. The disappointing earnings, particularly in deposits and stagnant margins, disappointed investors. Also Read | Delisting discontent boils over at ICICI Securities
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