InvestorQ : How have the ICICI Bank results been for the Sep-20 quarter? Do you suggest holding on to the stock?
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How have the ICICI Bank results been for the Sep-20 quarter? Do you suggest holding on to the stock?

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2 months ago
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Here are some key highlights you need to know about the ICICI Bank results for the quarter ended Sep-20.

· The bank reported 5.07% higher overall revenues at Rs.39,321 crore. Operating profits of the bank were higher by 18.65% at Rs.9,923 crore in Sep-20 quarter.

· The real cream was visible in the net profit that was up more than 4-fold at Rs.4,882 crore in the Sep-20 quarter. This was largely due to the lower tax burden in Sep-20.

· In fact the tax reduction benefit was so significant that it glossed over the 20% higher provision that the bank made in the quarter at Rs.2,996 crore.

· The impact was seen on the margins of the bank too. For example, the operating margins or OPM were up by 290 bps at 25.24%.

· At the same time, the net profit margins or NPM was also up 4-fold at 12.42% largely on the back of the sharply lower tax burden in the latest quarter.

· Gross NPAs are down sequentially but still relatively high on absolute basis at 5.17%. Net NPAs below 1% hints that most of the potential losses are provided for.

· ROA of 1.5% is among the best in class in banking and looks all the more attractive when combine with the provision coverage at 81.5%.

· The icing on the cake is that the total deposits were up 20% at Rs.832,936 crore with an average 40.3% CASA share. Loans also grew by 13%.

· Finally, the all-important net interest income or NII was up 16% at Rs.9,366 crore with NIMs at 3.57%. That could be the key metrics making the bank attractive.

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