BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
ICICI Bank Ltd. reported strong operating metrics with marginally higher net interest margin q-o-q at 3.9% despite elevated interest reversals, healthy core pre provision operational profit/assets at 2.8%, and better than expected advances growth at 17% y-o-y, with domestic book growing by 20% y-o-y.
NIM benefitted from a continued decline in cost of fund, sequentially higher credit-deposit ratio, and further reduction in non-India linked overseas book.
With continued strengthening of NIM over the last two quarters despite high interest reversals, we factor in seven-eight basis points higher NIM for FY22/23E.
ICICI Bank will also be a key beneficiary of reversal in interest rate cycle with a large marginal cost of funds based lending rate/repo linked book (at 64%).
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