ICICI Bank at 2-year high ahead of Q1 results; mkt-cap crosses Rs 2-lakh cr

ICICI Bank hit two-year high of Rs 315, up 1.6% on BSE in early morning trade, ahead of the release of its April-June (Q1FY18) results today.

The stock is currently trading at its highest level since March 13, 2015 and nearly 14% away from its all-time high of Rs 358 touched on January 28, 2015 in intra-day trade.

Since May 3, 2017, post January-March (Q4FY17) results, ICICI Bank has outperformed the market by gaining 27%, as compared to 9% rise in the S&P BSE Sensex.

ICICI Bank has entered into the elite league of corporate entities with a market value of over Rs 2 lakh crore after a sharp rally in the market price of private sector lender. At 10:25 am; ICICI Bank has market capitalization of Rs 200,796 crore, the BSE data shows.

“ICICI Bank’s loan growth to remain slows at 6?7%, but continued to be led by retail with growth of 18?20% in Q1FY18. Margins should remain under pressure as interest de?recognition continues from elevated slippages. Slippages to moderate from FY17 but will remain high and from the watchlist, but slippages outside the watchlist will be keenly watched,” analysts at Prabhudas Lilladher said in quarterly preview.

According to Edelweiss Securities, ICICI Bank’s loan offtake will be lower, however net interest income (NII) will likely benefit from better/sustained NIMs benefitting from lower funding costs.

Though incremental stress might be curtailed, credit cost will likely continue to be elevated. The provision requirement for accounts referred to National Company Law Tribunal (NCLT) remains a key monitorable, the brokerage firm said in results preview.

“Gross slippages are expected to remain moderate in Q1FY18 (4.5% slippage ratio). O/s watch-list stood at Rs 19,000 crore (around 3.7% of customer assets). Recoveries from the cement account recognized as non-performing loan (NPL) in Q4FY17 could lead to reversal in provisions,” said analysts at Motilal Oswal Securities Q1FY18 results preview.

ICICI Bank