|Bid||12.99 x 3000|
|Ask||13.05 x 21500|
|Day's Range||12.95 - 13.19|
|52 Week Range||6.86 - 15.42|
|Beta (5Y Monthly)||1.09|
|PE Ratio (TTM)||37.36|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jul. 23, 2019|
|1y Target Est||16.20|
Higher net interest income and fall in costs support ICICI Bank's (IBN) fiscal Q2 earnings.
(Bloomberg) -- ICICI Bank Ltd. posted a record quarterly profit as it set aside a lower amount of funds for potential bad loans even as the coronavirus pandemic constrains growth in the financial sector.Net income at India’s second-largest private lender rose to 42.51 billion rupees ($570 million) in quarter ended Sept. 30 from 6.55 billion rupees a year earlier. That was about 48% higher than the 28.7 billion rupee estimate of 14 analysts surveyed by Bloomberg.The bank, which raised 150 billion rupees in August to bolster its capital ratios, set aside 29.95 billion rupees, nearly a third of 75.94 billion rupees of provisions in the previous quarter. ICICI Bank had pegged it at 25.07 billion rupees a year earlier. The gross bad loan ratio was also lower at 5.17%, compared with 5.46% at the end of June. Net interest income rose 16% from a year ago.The lender did not make any additional provisioning for Covid-19 induced bad loans as it had “frontloaded” them in June quarter, said Sandeep Batra, President of ICICI Bank, adding that he expected a “more normalized” financial year starting April 1. Lower tax payout in the second quarter from a year earlier also helped the bottomline.Read about India picking up speed as animal spirits soar“We are focused on risk calibrated growth,” Batra said adding that the bank saw its highest ever home loan disbursements in September. “Covid related impact won’t be there next year as economic activity is coming back.”Revival of consumer-led demand ahead of festive season helped India pick up speed in September from the pandemic-induced slump.Despite a six-month loan moratorium, an extension to the relaxation of rules surrounding bad loan classification and a loan restructuring program, many banks are turning more cautious when lending to avoid further asset deterioration.Read about bad loan ratio to jump to two-decade high Banks came into the year already weakened by a two-year-old shadow lending crisis that had eroded capital. Struggling with the worst bad loan ratios among major nations, Indian lenders have been rushing to raise capital and curbing their risk appetite.The bank also expects its provisioning to “completely cushion” against potential stressed loans, Chief Financial Officer Rakesh Jha said.(Updates with comment from earnings call in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Indian shares edged up on Thursday after activity in the country's coronavirus-crippled services industry contracted at a slower pace than in July, while Vodafone Idea rose after a report said U.S. wireless carrier Verizon Communications and Amazon.com Inc may invest in the company. A survey showed activity in India's services industry fell for a sixth straight month as coronavirus restrictions continued to hurt business operations and demand, but improved from July. "The numbers are not that good, but its not that bad either, and markets don't have anything to immediately react to, so we are taking positive cues from global markets which are doing fairly well," said Deepak Jasani, head of research at HDFC Securities in Mumbai.