Banking Sector Q3 Earnings Review - Stress Settles Lower; Growth, Earnings, Return Profile Looking Up: ICICI Securities
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Banking Sector Q3 Earnings Review - Stress Settles Lower; Growth, Earnings, Return Profile Looking Up: ICICI Securities

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.

ICICI Securities Report

Our apprehensions, articulated in Q3 FY21 preview that Q3 earnings will be a true performance test for banks, were addressed positively with number print echoing affirmative narrative.

1. Stress recognition (in the form of pro-forma slippages of 2-5%, Special mention account-2 pool) and invoked restructuring (at less than 1%) settled within or below the guided range;

2. credit cost was contained much lower than anticipated leading to earnings upgrade;

3. robust current account savings account accretion, sharp decline in deposit cost and release of liquidity buffer more than offset any adverse impact of interest income reversal and credit-deposit ratio moderation, leading to stable-to-improving net interest margin profile.

Click on the attachment to read the full report:

ICICI Securities Banking Q3FY21 Review.pdf

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