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.
Systematix Research Report
In Q4 FY22, ICICI Bank Ltd. posted jump in net profitability mainly driven by negligible credit cost. The bank’s reported net interest income and pre-provision operating profit in-line with our estimates but much higher net deletion in stressed credit portfolios at Rs 29.4 billion (34 basis points of loans) as compared to Rs 10.6 billion (13 bps of loans) in previous quarter necessitated lower provisions.
ICICI Bank’s management indicated that this occurrence of large pre-payment should not be extrapolated. It’s notable that the bank has never witnessed such strong nonperforming loan recovery and/or upgrades in last 15 years.
Nonetheless, ICICI Bank’s balance-sheet is in a reasonably strong position with ~79% provision cover, Common Equity Tier- I at 17.6% and contingent provision at 87 bps (of loans).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR