ICICI Bank reported 26% rise in net profits at Rs.1221 crore for the Mar-20 quarter. This is almost a third of the median analyst estimates in terms of quarterly profits. Net Interest income (NII) was up by 17% at Rs.8927 crore for the quarter. However, the quarter also saw a sharp spike in provisions with the provisioning more tripling to Rs.5967 crore which included special Covid-19 provisions of Rs.2725 crore. According to the bank spokespersons, the impact of Covid-19 could result in fewer business opportunities, lower revenues and increase in levels of non-performing assets and provisions. For the full year FY20, ICICI Bank’s net profits grew 136% to Rs.7931 crore. While the YOY growth is positive, the markets will be disappointed that the actual numbers were almost a third of the street estimates. That may weigh on the stock when trading resumes on 11 May.
ICICI Bank reported 26% rise in net profits at Rs.1221 crore for the Mar-20 quarter. This is almost a third of the median analyst estimates in terms of quarterly profits. Net Interest income (NII) was up by 17% at Rs.8927 crore for the quarter. However, the quarter also saw a sharp spike in provisions with the provisioning more tripling to Rs.5967 crore which included special Covid-19 provisions of Rs.2725 crore. According to the bank spokespersons, the impact of Covid-19 could result in fewer business opportunities, lower revenues and increase in levels of non-performing assets and provisions. For the full year FY20, ICICI Bank’s net profits grew 136% to Rs.7931 crore. While the YOY growth is positive, the markets will be disappointed that the actual numbers were almost a third of the street estimates. That may weigh on the stock when trading resumes on 11 May.