ICICI Bank Q2 Review: Brokerages Back Growth, See Margins Recovering In Q4
ICICI Bank flagged a risk in a quarterly results development.
· NDTV Profit
ICICI Bank's September-quarter profit beat expectations, with strong net interest income growth, lower provisions and improving asset quality. Five brokerages retained positive ratings, while flagging near-term margin pressure from FCNR-B deposits and weak CASA growth.
The analysis
Against that, the stock is -0.6% on the day at ₹1,388.40, and has returned -1.5% over three months. It sits 5% below its 52-week high. The banks sector has moved -3.1% over the same period, so ICICI Bank is running 1.6 points ahead of its peers.
For ICICI Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
- Credit growth and asset quality are the pulse of the financial sector, which is the largest weight in Indian indices.
Market context
- The company directly in focus is ICICIBANK.
- Sector exposure: Banks.
In this story
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